Gold prices edged lower weighed by a slight uptick in U.S. Treasury yields.

Gold experienced a marginal -0.09% decline, settling at 60657, influenced by a slight increase in U.S. Treasury yields. Despite this, the precious metal found support from the belief that U.S. interest rates have peaked. Concerns about a slowing U.S. job market and lower-than-expected consumer inflation prompted a shift in market forecasts, with attention now on the potential timing of rate cuts by the Federal Reserve.

The central bank is expected to maintain rates in December. Recent data revealed a slowdown in U.S. consumer inflation for October, coupled with the first decline in retail sales in seven months and an increase in unemployment benefit claims. In India, buyers disregarded local price highs during Diwali, sustaining purchases, while China maintained premiums with continued gold accumulation by the top buyer. Sales of coins and bars increased, and jewellery demand saw improvement.

Technically, the gold market is undergoing long liquidation, with an -11.6% drop in open interest and a price decrease of -56 rupees. Support is identified at 60415, with a potential test of 60175 on the downside, while resistance is anticipated at 60835, with a possible test of 61015 on the upside.

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