Gold yesterday settled up by 0.01% at 59901 as the dollar rose as weaker-than-expected U.S. economic growth in the first quarter is not likely to deter the Federal Reserve from raising interest rates next week. The advance estimate of first-quarter gross domestic product (GDP) showed a 1.1% annualized rate during the period. The economy grew at a 2.6% pace in the fourth quarter. Core personal consumption expenditure prices rose 4.9% in the first three months of the year, higher than the consensus figure of 4.7% and up from the fourth quarter figure.
A separate report from the Labor Department showed initial claims for state unemployment benefits decreased by 16,000 to a seasonally adjusted 230,000 for the week ending April 22. The report suggested a still-tight labor market and also underpinned next week’s rate increase expectations. Switzerland exported more to mainland China in March than in any month since July 2022, but shipments to India and Turkey fell from February’s level, Swiss customs data showed. China’s gold production jumped 6.9% in the first quarter of 2023 recovering to pre-pandemic levels, partly spurred by a jump in demand for gold and jewelry as investors sought safe havens away from jittery financial markets.
Technically market is under short covering as the market has witnessed a drop in open interest by -0.76% to settle at 14899 while prices are up 8 rupees, now Gold is getting support at 59533 and below the same and could see a test of 59164 levels, and resistance is now likely to be seen at 60285, a move above could see prices testing 60668.