Gold price in range bound at present
- Gold prices for August settled tad higher at $1303.20 on Monday. The metal had managed a small weekly return of about 0.3% last week after challenging the closely watched $1,300 line.
- The dollar index settled up by 0.1% to 93.56. That was around its lowest level since mid-May and set the greenback on track for its third losing session in a row,
- The world is going through a trade uncertainty, where U.S.-China trade talks broke down over the weekend without an agreement. Finance ministers from Canada, France, Germany, Italy, Japan and the U.K warned the US of retaliation counter tax its products in reaction tariff imposed steel and aluminum products by Whitehouse
- Indian demand for gold dropped 37% in May to record 77 metric tons of imports down from 126 mt recorded in April…
Gold price in range bound at present until after the FOMC meeting concludes and the market absorbs the statement and signals for next interest rate increase. The metal is caught between strong US economy and the renewed global trade war fear. A dollar is showing some strength ahead of the FOMC, following a weekly decline of 0.6% last week. FED is the optimism about the US growth and is up for second rate hike for the year in June policy meeting. USD Gold is having the strong support of $1280 ton and resistance remains at $1320, at MCX gold prices to follow international gold prices and it looks to trade in the broader range of 30900-31500, while we expect silver prices to find support at 40200-41500.