Gold Prices Climb as Market Awaits U.S. Economic Data

Gold prices experienced a slight increase on August 14, 2023, as futures contracts for October on the Multi Commodity Exchange of India (MCX) opened at Rs 1,00,297 per 10 grams. This marks a rise from the previous day’s closing price of Rs 1,00,185 per 10 grams. The recent uptick in gold prices follows a broader trend influenced by various economic factors.

In global markets, spot gold rose marginally, closing at approximately $3,355 per ounce. This increase signifies a continued recovery over the previous days, driven by a weakening U.S. dollar and heightened expectations for interest rate cuts. The dollar has fallen to a two-week low, contributing to the favorable conditions for gold as a safe-haven asset.

Market Influences and Expectations

According to Kaynat Chainwala, Assistant Vice President of Commodity Research at Kotak Securities, geopolitical tensions in regions such as Ukraine and the Middle East, combined with risks associated with U.S. tariffs, are sustaining gold’s appeal. Chainwala noted, “Today, gold extends gains to trade above $3,365 ahead of U.S. Producer Price Index (PPI) and jobless claims data.”

The market is reacting to recent economic indicators, including mild inflation data from July and weak job numbers earlier this year. The CME FedWatch tool indicates a 94% probability of a rate cut in September, with further cuts anticipated by year-end. These factors continue to influence investor sentiment and gold demand.

Chainwala also pointed out that optimism surrounding trade negotiations, particularly between Washington and Beijing, may temper gold’s upward trajectory. The extension of a tariff truce by 90 days could alter market dynamics as discussions between U.S., European, Ukrainian, and Russian leaders approach.

Current Gold Prices Across Major Cities

As of August 14, the latest prices for gold in major cities are as follows:

– Mumbai: Rs 1,00,297 for 10 grams of 24 carat gold, Rs 92,000 for 10 grams of 22 carat gold.
– Delhi: Rs 1,00,400 for 10 grams of 24 carat gold, Rs 92,100 for 10 grams of 22 carat gold.
– Bengaluru: Rs 1,00,350 for 10 grams of 24 carat gold, Rs 92,050 for 10 grams of 22 carat gold.

A comprehensive understanding of market movements is essential for investors looking to navigate the gold market effectively. As always, it is advisable for individuals to consult certified experts before making investment decisions.

Disclaimer: The views and investment tips expressed by experts are their own and do not reflect the opinions of Moneycontrol or its management.