Gold Surges to 3-Week High on Dollar Weakness, Awaited US Data

Published on Aug 29, 2023 14:12

Gold were seen trading steady near 3 week high of $ 1954.2 an ounce hit earlier in the session today, following weakness in the US dollar and as Treasury yields ease.

Investors are now pondering the impact of Fed Chair Jerome Powell`s Jackson Hole remarks, while awaiting crucial US economic data to gauge possible interest rate trends. Powell`s speech highlighted the Fed`s willingness to raise rates if necessary, while keeping a restrictive policy until inflation significantly moderates. However, he stressed a careful approach to additional rate increases due to ongoing progress in containing inflation and potential risks from a robust US economy.

Following Powell’s statement, investors will now be more focussed on the crucial data releases from US this week. On the data front, US will unveil Q2 GDP figures on August 29. Manufacturing PMI data for August, revealing economic trends, will be released for the US, UK, Japan, China, and the Eurozone. Employment reports gain attention, with the US payrolls report scheduled for September 1.

International bullion futures for October delivery were trading at $ 1950.30 up $3.5 an ounce. Whereas, MCX gold jumped past Rs 59000, trading up by Rs 85 per 10 grams. The counter may find resistance near Rs 59200 and Rs 59450 levels.