Gold Market
TD Securities says gold is outperforming other precious metals despite rising energy prices and Fed hike expectations. Near-term CTA selling is possible below key levels, but longer-term support remains robust.
Gold declined 0.9% to $4,360 after US producer prices and surging oil prices fuelled expectations of a hawkish Fed, sending yields and the dollar higher.
Spot gold gained 0.6% to $4,381.32 as a subdued dollar and renewed US-Iran tensions supported prices. Investors now await US inflation data for the next rate move.
TD Securities says gold has held firm despite higher Fed rate hike odds. The next big test is US inflation data, with structural demand still underpinning the metal.
Gold rose more than 1% on Wednesday, supported by the US Treasury's announcement of a bond buyback for September 10, even as the US Dollar clawed back some losses and yields edged higher.
Gold recovered from one-week lows near $4,350 early Wednesday, but the rebound looks fragile as Middle East tensions persist and traders eye US inflation data due this week.
Gold and silver prices declined for a second day on the MCX as traders assessed Middle East tensions, rising crude oil, and a 60% chance of a Fed rate hike. US inflation data is the next focus.
Gold rebounds from a one-week low near $4,340 as the US dollar weakens. However, expectations of further rate hikes and rising geopolitical tensions cap the upside ahead of US inflation data.
Gold prices fell on Wednesday as intensifying conflict in the Middle East pushed crude oil higher, stoking inflation fears and raising expectations of a US interest rate hike.