Shillong, August 25: Gold prices have found stability at levels close to a two-week peak, setting the stage for their strongest week in six.
As per IANS, market focus is divided between mixed US economic indicators and the anticipation of statements from major central bank Governors, including Federal Reserve Governor Powell.
These statements are expected to provide insights into future interest rate trajectories, as outlined by Navneet Damani, Senior VP of Commodity Research at Motilal Oswal Financial Services.
After experiencing a drop of over 2% in the prior session, the US 10-year Yield is gradually rebounding. Meanwhile, the Dollar index remains on a modest ascent, hovering around a 10-week high beyond the 104 mark.
Earlier in the week, Manufacturing and Services PMI data from key economies fell notably below expectations, which lent support to an upswing in the precious metals market.
In contrast, the count of initial jobless claims in the US decreased for the second consecutive week, and US Core Durable Goods Orders data surpassed forecasts.
Notably, two Federal Reserve officials cautiously embraced the rise in bond market yields, suggesting that it could complement the central bank’s efforts to moderate economic growth and achieve the 2% inflation target. These officials also indicated the likelihood of no further interest rate hikes being necessary.
Leading up to the significant Jackson Hole symposium, the CME Fed-Watch tool’s probability chart witnessed a 5% decline in the likelihood of a pause in the September meeting, now standing at 80%. Another focal point for the day is the scheduled release of Michigan consumer sentiment data.
On the COMEX, the broader trend for gold prices could span between $1,890 and $1,945. Domestically, prices are anticipated to remain within the range of Rs 58,400 to Rs 59,100.