Gold Up; Market Awaits US Retail Sales and Industrial Production Data

Published on Jul 18, 2023 14:00

Gold futures were seen trading with sturdy gains in Asia trades as dollar softened ahead of the retail sales and industrial production data from US. The commodity also got buying support after it fell more than $10 to end the session at $ 1956 an ounce in yesterday’s session.

For now gold seems to have bottomed out, and the metal should continue its rally until Fed clears further stance about its rate cycle. It seems to find a good support near $1900 levels and should breakthrough $2000 levels for further upside. The metal hit the peak of $2085.40 and low of $1810.80 so far this year.

MCX gold futures for August delivery are trading up Rs 185 at Rs 59321 per 10 grams. The counter should face resistance near Rs 59400-550 levels in today’s session.

International bullion was seen trading up $10 at $ 1966.6 an ounce. A move above $1970 in critical for further upside.

The focus of the day was primarily on the forthcoming US retail sales and industrial production data, to assess its potential impact on the monetary tightening direction of the US Federal Reserve. The dollar continued to trade below 100 mark nearing the lowest level since April 2022.