Gold fell after Eurozone inflation numbers came in below expectations.

Gold prices experienced a marginal decline of -0.27%, settling at 62640, as the strengthened to 103.3. The Euro’s fall, triggered by lower-than-expected inflation figures for the Euro Area, contributed to the dollar’s gain. The Gold market received support from recent statements by Federal Reserve officials, indicating a potential halt in interest rate hikes. Fed Governor Christopher Waller hinted at a forthcoming rate cut, and Cleveland Fed President Loretta Mester acknowledged progress in achieving the 2% inflation target. 

Market sentiment now reflects expectations of a cumulative 100 basis points rate cut by the Fed in 2024, reinforcing the decline in U.S. Treasury bond yields. The second estimate of the U.S. GDP revealed a 5.2% annualized growth rate in Q3, exceeding the initial 4.9% report. Asian hubs experienced some selling, with individuals capitalizing on relatively high prices. Lacklustre demand during the Indian wedding season led to dealers offering steeper discounts, reaching up to $6 per ounce over official domestic prices. China’s net gold imports via Hong Kong declined by approximately 23% in October compared to the previous month. Net imports, a crucial indicator for the world’s top gold consumer, stood at 26.793 metric tons in October, down from 34.757 tons in September. 

From a technical standpoint, the market is witnessing fresh selling, with a 0.79% increase in open interest, settling at 17259. Gold finds support at 62500, and a breach below could test 62360 levels. On the upside, resistance is anticipated at 62810, with a move above potentially pushing prices to test 62980.

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