The price of gold yesterday dropped by 0.2% to settle at 58853 as demand for bonds in the secondary market increased due to the CPI report coming in lower than expected, supporting market predictions that the Fed won’t raise interest rates this year. Compared to estimates of a 3.3% increase, consumer prices in the US increased by 3.2% yearly. The core measure also increased by 4.7% annually, which was less than predicted.
The number of workers seeking first-time unemployment benefits increased much beyond market estimates last week, which led to an unexpected weakening in the U.S. labor market. In comparison to the previous week’s unrevised estimate of 227,000 claims, the U.S. Labour Department reported that weekly unemployment claims increased by 21,000 to 248,000 during the week ending August 5.
The Perth Mint reported that its July gold product sales fell to their lowest level since October 2020 and that its July silver product sales reached a more than three-year low due to a decrease in demand as a result of rising prices. From 73,124 ounces in June, monthly sales of gold coins and minted bars reached 44,009 ounces last month, a decrease of roughly 45% from the same period the previous year.
Technically, the market is experiencing new selling as open interest increased by 0.01% to settle at 13788 while prices are down by 120 rupees. Currently, gold is receiving support at 58670, and a move below that level could result in a test of 58487 levels. On the other hand, resistance is now likely to be seen at 59091, and a move above could result in a test of 59329 levels.
