Gold under stress, all eyes on Powell

Published on Jun 21, 2023 14:21

Gold futures continued their decline today, with markets growing nervous ahead of Federal Reserve Chairman Jerome Powell`s upcoming speech. The safe haven metal is awaiting a clear direction, which may be determined by a break of the $2000-1930 range in the near future.

International bullion front month contracts were trading at $1943 per ounce, down 0.23%, while MCX gold futures for August delivery were down Rs 66 at Rs 58752 per 10 grams. This marks the first time this month that the counter closed below the Rs 59000 level.

Gold has faced consistent selling pressure since the beginning of the month, and its price has remained within a narrow range of $64 (between $2000.70 and $1936.10) in June. The narrow range may be an indication of breakthrough in the commodity on breach of these levels.

All eyes are set on crucial testimony by Powell scheduled at 10 a.m. Eastern time. Federal Reserve Chairman Jerome Powell is scheduled to testify before the House Financial Services Committee and the Senate Banking Committee today. The focus will be on the central bank`s strategy for managing inflation, following their decision to hold off on rate hikes despite elevated inflation levels.