Gold remained stable as Treasury yields and the U.S. dollar increased

After traders processed Friday’s jobs news, the U.S. dollar and Treasury yields rose. This week’s U.S. inflation data will now be the focus, and gold yesterday finished down -0.18% at 59420. According to reports, the U.S. economy added fewer jobs than anticipated in July, but strong pay growth and a drop in the unemployment rate back to 3.5% indicated that labor market conditions remained tight.

Global central banks increased their gold reserves significantly during the first half of 2023, marking a historic milestone. The World Gold Council’s data shows that their combined net gold purchases totaled an astonishing 387 tonnes. Since the Council started recording quarterly data in 2000, this sum represents the biggest amount ever reported for a first-half period.

According to figures from the central bank, Venezuela’s gold holdings decreased by eight metric tonnes in the first half of the year, continuing a years-long trend of decline in the midst of a protracted economic crisis. The central bank’s entire reserves decreased in the first half of 2023, falling from 69 tonnes in December 2022 to 61 tonnes now. At the end of June, the gold reserves were valued at $3.65 billion, a $261 million decrease from their value in December.

Technically, the market is in long liquidation as evidenced by the market’s drop in open interest (down -2.82% to settle at 14253 while prices are down -107 rupees); currently, gold is receiving support at 59299 and a move below that level could result in a test of 59179 levels; on the other hand, a move above 59553 could result in a test of 59687 levels.

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