Gold Soaring Towards $2400 On Dollar Decline

Published on May 16, 2024 14:02

Gold prices surged near $2400 per ounce in electronic trading today, reaching their highest level in almost a month, supported by a weaker dollar and declining Treasury yields. The dollar index fell to approximately 104.2, its lowest in five weeks, following US inflation data showing a slowdown in April. Core inflation in the US dropped to an annualized 3.6% from 3.8% in March, marking the lowest level in three years. Monthly inflation eased to 0.3%, while on a 12-month basis, headline inflation and core inflation both moderated. Furthermore, retail sales remained flat, indicating a potential softening in consumer demand. Traders will now keep eye on US economic data including building permits, housing starts, jobless claims, Philly Fed Index, and industrial production, alongside speeches from Fed`s Barr, Harker, Mester, and Bostic on Thursday. Domestically, MCX gold futures surpassed the Rs 73000 per 10 gram mark, witnessing a significant increase of over Rs 1000 for the week.