Gold prices steadied amid a retreat in the U.S. dollar and Treasury yields.

Gold yesterday settled up by 0.06% at 60234 amid a retreat in the U.S. dollar and Treasury yields. Improved risk sentiment weighed on bullion after the bill to raise the debt limit and cap government spending in the U.S. was passed by a wide margin, days before the world’s biggest economy is due to start defaulting on its debt. The downside in prices remained capped after Philadelphia Federal Reserve President Patrick Harker, as well as Fed Governor and vice chair nominee Philip Jefferson, signalled willingness to skip raising rates next month to assess incoming data. Swiss gold exports fell to their lowest in ten months in April as shipments to India, China and Turkey shrank, Swiss customs data showed.

The decline coincided with a period of very high bullion prices, which tend to suppress consumer demand, particularly in Asia. Turkey has also imposed some restrictions on gold imports after a devastating earthquake in February. Swiss gold exports to mainland China and India in April were the lowest since January, shipments to Hong Kong were the lowest since November and exports to Turkey were the lowest since April last year, the customs data showed.

Technically market is under short covering as the market has witnessed a drop in open interest by -2.68% to settle at 15028 while prices are up 36 rupees, now Gold is getting support at 59821 and below the same and could see a test of 59407 levels, and resistance is now likely to be seen at 60513, a move above could see prices testing 60791.

Source link