Gold prices struggled for momentum on August 10 in the international markets, as investors refrained from making big bets ahead of U.S. inflation data, which is expected to influence the pace of Federal Reserve rate hikes. Today morning the gold contracts were trading 0.24 percent lower on the Multi-Commodity Exchange (MCX) at Rs. 52,361 for 10 grams and silver slips 0.22 percent at Rs. 58,664 a kilogram.
“Gold traders remain a little cautious as they are eagerly awaiting the U.S. CPI data which is due later today, as this data is expected to be the guiding factor for the Fed’s next policy initiatives, to tackle inflation. The market exceptions remain split as far as the U.S. inflation data expectation goes,” said, Pritam Patnaik, Head-Commodities, Axis Securities. With both the dollar index and bond yields holding, gold prices will face some headwinds in the near term. That said, the long-term up-move remains very much on the cards, he added.
Tapan Patel, Senior Analyst, HDFC Securities, told that Gold prices traded steady on Wednesday with spot gold prices at COMEX were trading near $1794 per ounce in the morning trade. The yellow metal traded firm ahead of U.S. inflation data with market expectations of another record in the numbers. MCX Gold October support lies at Rs. 52,100 and resistance at Rs. 52,800 per 10 grams.
“High global inflation, effects on treasury yields and the dollar had given some strength to gold prices earlier. However, the cool-off in metal prices, recovery in equity markets, and the stronger dollar are mounting pressure on gold prices. The U.S. inflation data due today may be the key driver of the gold trend,” said, Ravi Singh, Vice President & Head of Research, Share India.