Gold Silver Reports (GSR) – In global markets, gold prices remained steady today after Thursday’s fall. Gold was little changed at $1,417.96 an ounce. In India, on MCX gold futures for August delivery fell 0,02% to ₹34,209. Investors remained cautious ahead of today’s US jobs data for indications on rate cuts from the US Federal Reserve’s July meeting, analysts said.
In global markets, gold prices had hit a six-year high last week at $1,438.63 an ounce, driven by a dovish outlook from major central banks and an escalation of tensions between the United States and Iran. Expectations of a dovish approach to monetary policy globally, have driven inflows into gold. Lower interest rates tend to make non-yielding gold more attractive to investors.
Read More : Budget 2019 – Cut Import Duty on Gold, Says Gems/ Jewellery Sector – Gold Silver Reports
On the technical front, spot gold may retest a resistance at $1,435 an ounce, according to Reuters technical analyst Wang Tao.
“Traders are seeking direction from US jobs data for more cues on US central bank’s stance on interest rate cut,” said Hareesh V, Head-Commodity Research, Geojit Financial Services.
Finance Minister Nirmala Sitharaman will today present the first Budget of the Modi 2.0 government. The government has received representations from traders for reduction in customs duty on gold. Currently, import of the yellow metal attracts 10% duty.
India is one of the largest gold importers in the world, and the imports mainly take care of demand from the jewellery sector.
The country’s gold imports dipped about 3% in value terms to $32.8 billion during 2018-19, which is expected to keep a lid on the current account deficit.
The domestic jewellery sector always demands a cut in the duty and relaxation of other import norms for increasing availability of the yellow metal to boost jewellery exports.
Read More : Gold Investors are now Focused on US Jobs Data Due This Friday
