Gold steadied as the dollar edged down

Gold yesterday settled down by -0.1% at 59499 as the dollar edged down after U.S. President Joe Biden and House speaker Republican Kevin McCarthy reached an agreement to suspend the $31.4 trillion debt ceiling until Jan. 1, 2025. The deal is now ready to move to Congress for a vote. As debt default worries recede, investors have shifted their focus to this week’s U.S. jobs report for May and the upcoming FOMC meeting in June. U.S. consumer spending also increased more than expected in April, raising market expectations for another 25-bps rate hike from the Federal Reserve next month.

China’s net imports via Hong Kong rose by about 5% in April from the previous month, Hong Kong Census and Statistics Department data showed.Net imports into the world’s top gold consumer stood at 49.906 tonnes in April, compared with 47.527 tonnes in March, the data showed. Total gold imports via Hong Kong were up 4.4% at 53.581 tonnes. After buying more gold than any other central bank in 2022, Turkey went on a selling spree, offloading 81 tonnes in April and 15 tonnes in March. The country’s official gold reserves fell by 80.8 tonnes in April to 491.2 tonnes, said World Gold Council (WGC).

Technically market is under fresh selling as the market has witnessed a gain in open interest by 11.52% to settle at 13736 while prices are down -61 rupees, now Gold is getting support at 59422 and below the same and could see a test of 59345 levels, and resistance is now likely to be seen at 59618, a move above could see prices testing 59737.



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