₹71,740 per 10 gm but soon came under the sell-off pressure and touched an intraday low of ₹71,645. According to commodity market experts, gold prices today are trading flat as the market has already discounted the disappointing US retail sales data.
They said that the market is now awaiting the US Fed's decision on the rate cuts as US Fed members reiterated the interest rate cut in the upcoming US Fed meeting. However, there was no timeline mentioned for the interest rate cut in Tuesday's speech."Gold prices today are trading flat as the market has already discounted the weak US retail sales.
Now, the market is looking at the US Central Bank for a hint on the interest rate cut as disappointing US retail sales data is expected to put pressure on the US Central Bank for a rate cut this year. However, US Fed members showed no signs of any hurry for the US Fed rate cut in their speech on Tuesday, that's why gold prices are expected to remain range-bound on Wednesday," said Anuj Gupta, Head of Commodity & Currency at HDFC Securities.Anuj Gupta said the US dollar retraced from its recent highs after the US retail sales data failed to meet the market expectations.
However, the US Fed members continued their inflation concerns, which enabled the US currency to bounce back and put the precious yellow metal under pressure.Kaynat Chainwala, AVP — of Commodity Research at Kotak Securities, said, "US retail sales data released yesterday showed that retail sales in the US rose by 0.1 percent in May, missing the 0.2 per cent forecast and signalling cooling consumer sentiment. Meanwhile, on Tuesday, a chorus of US Federal Reserve officials emphasized the need for more evidence of cooling inflation before lowering interest rates.
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