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Gold`s Stable, Dollar Weakens Prior to CPI Announcement

Published on Aug 10, 2023 15:11

Gold futures continued to trade on flat note with the metal lingering near one-month lows, while silver stabilized following significant losses, with markets bracing for vital U.S. inflation data later in the day.

Gold faced pressure from a stronger dollar, rising yields, and waning risk appetite, pushing traders towards the dollar amid expectations of sustained higher U.S. interest rates this year.

International bullion main contract was seen trading with gains of $2 at $1952.70 an ounce. It may test the levels of $1930- $1910 levels with lot depending in the US CPI data due later today. MCX Gold futures for October delivery inched up to Rs 59010 per 10 grams, up by marginal Rs 37. Meanwhile, silver futures for September delivery jumped by Rs 207 at Rs 70179 per kg on MCX.

Gold`s downward pressure is also driven by concerns about deflation in China. In July, China`s inflation rate fell from 0% in June to -0.3%, and Producer Prices dropped by 4.4% year-on-year.

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