Gold rates today under pressure as US dollar hits six-month high. Buy or wait for more correction?
Gold rate today: On account of US dollar climbing to six month peak, gold prices pared much of its previous week gains. The precious yellow metal price ended ₹91 per 10 gm lower at ₹58,907 levels on Friday whereas spot gold price finished around $1,918 per ounce levels. Likewise, silver price on MCX finished at ₹71,538 per kg levels whereas silver price in international market ended at $22.91 per ounce levels.
According to commodity market experts, gold rates today are under pressure due to upswing in the US dollar against major global currencies. US dollar index has climbed above 105 levels and it has been sustaining above this levels. They said that US dollar has gained strength due to resilience in the US economy.
However, they maintained that weak Chinese economy and the downward revision of Japan's second-quarter GDP may lend support to gold prices at support levels. Speaking on the reason for recent sell off in gold prices, Sugandha Sachdeva, Executive Director & Chief Strategist at Acme Investment Advisors said, "Gold prices retraced much of their last week’s gains, marking the first decline in three weeks. This can be attributed to the notable upswing in the US dollar, which competes with gold for safe-haven demand.
The greenback's resilience acted as a significant headwind for gold and momentarily dimmed its appeal to investors. The resilient US economy, as reflected in positive economic data, has driven the dollar index to a six-month peak, exerting pressure on gold prices. The acceleration of US services activity in August, coupled with a more-than-expected decline in jobless claims, has led to increased speculation about the possibility of another rate hike by the US central bank before the end of the year in
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