Gold held steady despite conflicting predictions for the Fed’s monetary policy decision

Amid conflicting predictions for the Fed’s monetary policy decision, gold yesterday declined by -0.12% to 59821. According to data, 261 thousand Americans applied for unemployment benefits in the week ending June 3, up from 233 thousand the week before and the 235 thousand expected. China and India’s physical gold demand decreased, forcing dealers to give discounts, and purchasers postponing purchases due to India’s unpredictable prices.

As opposed to $4 premiums last week, Indian dealers provided discounts of approximately $5 per ounce above official domestic pricing. Top customer China increased its gold reserves for the seventh month in a row, reaching 67.27 million fine troy ounces by the end of May. Between $3 discounts and a $3 premium to international prices, gold was traded in China. Gold was sold in Hong Kong at $2.50 premiums over global prices.

Dealers in Singapore charged premiums between $1.50 and $2.50. According to the most recent study from the World Gold Council, investor sentiment in the gold market improved even though prices dropped below $2,000 an ounce last month. According to a study by the WGC, exchange-traded instruments with global gold backing received 19 tonnes of gold in May, worth $1.7 billion.

Technically, the market is in long liquidation because open interest has decreased by 1.45% to settle at 14169 while prices are down by 70 rupees. Currently, gold is receiving support at 59660, and a move below that level could result in a test of the 59499 levels. Meanwhile, a move above 60049 could result in a test of 60277.

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