Gold Surges Beyond $1,970 Amid Weaker US Data and Rate Hike Pause Speculation

Published on Aug 31, 2023 14:34

Gold rocketed above $1,970 per ounce on Thursday, propelled by disappointing US economic data, which heightened expectations of a pause in Federal Reserve interest rate hikes. The metal reached a one-month peak, benefiting from a weakened dollar and reduced US Treasury yields. Despite the US reporting lower-than-anticipated second-quarter economic growth and a drop in private job growth to a five-month low, Germany`s inflation only slightly moderated, while Spain`s inflation picked up. These trends added weight to the case for more assertive measures from the European Central Bank. Investors now await the US PCE price index and nonfarm payrolls data for further monetary policy insights. MCX bullion futures for October expiry jumped above Rs 59500 per 10 grams. The contract should find resistance in the range of Rs 59500-700 levels.