gold prices rose 91 rupees to ₹58,564 per 10 grams in futures trade as investors opened new positions in response to strong spot demand. Gold futures for August delivery traded at ₹58,564 per 10 grammes on the Multi Commodity Exchange, up ₹91, or 0.16 percent, in a transaction of 10,916 lots. According to analysts, investors new positions is what caused gold prices to increase. Gold remained range-bound on Thursday as investors awaited the release of U.S.
jobs data, which could impact the Federal Reserve's monetary policy decisions. Globally, the price of gold was down 0.6% at USD 1,926 per ounce in New York. The Spot gold stabilized at $1,917.69 per ounce, while U.S. gold futures dipped 0.2% to $1,923.60.
The decline in the dollar index made gold more affordable for international buyers, but higher benchmark yields limited gold's upside potential. Craig Erlam, a senior markets analyst at OANDA told news agency Reuters, “gold could face downward pressure in the near term unless there is a significant combination of economic data that convinces Federal Board policymakers to maintain their current stance. Investors are closely monitoring initial unemployment benefit claims, the ADP National Employment report, and the Job Openings and Labor Turnover Survey (JOLTS) for further insights." Erlam also said that, “a strong jobs report would increase the likelihood of a rate hike in the current month and possibly in September as well.
Read more on livemint.com