Gold Struggles to Sustain Break Above $2000 Barrier

Published on Aug 01, 2023 13:18

Gold slipped back below $2000 mark and continues to face resistance as investors awaited more data to gauge the economic and monetary policy outlook. Investors are now looking ahead to upcoming data, including US manufacturing and services PMI figures on Tuesday and a crucial monthly jobs report later in the week, to assess the economic landscape.

Recent report released by World Gold Council showed that global gold demand in H1 showed resilience with record central bank purchases and strong jewellery consumption, despite a 2% drop in Q2. Gold investment in bars and coins saw a 6% YoY growth, while ETF outflows were smaller in Q2 compared to the previous year. Overall gold supply increased by 7% YoY to 1,255t in Q2, with estimated record mine production of 1,781t in H1 and the total demand (including OTC) increased by 7% year-on-year, indicating a solid global gold market.

International bullion futures tumbled down $15 at $1994.20 per ounce following strength in the US dollar which is on the verge of breaking above 102 mark. MCX gold for October delivery are trading down Rs 418 at Rs 59664 per 10 grams. The counter should find resistance near Rs 59400 levels today.