Angel Commodities’ report on Gold
In the yesterday’s trading session, Spot Gold traded in a range bound manner with a slight positive bias while MCX Gold prices surged by over 0.74 percent gaining support from virus concerns, China’s monetary easing measures, ECB’s shift in inflation strategy and uneven recovery.
The US Dollar Index has surged after data showed U.S. consumer prices last month rose by the most in 13 years, with focus now shifting to Federal Reserve Chair Jerome Powell’s testimony before Congress.
In addition, markets are still discounting the recent statement made by the finance ministers of the world’s 20 largest economies. They warned that an upsurge in new coronavirus variants and poor access to vaccines in developing countries could threaten the global economic recovery.
Also, soaring number of Delta variant COVID-19 cases ignited worries over extension of lockdown in major economies and derailing the global recovery which further supported the safe haven asset, Gold.
Gold may remain choppy amid lack of fresh cues however increasing challenges may improve safe haven appeal. Markets are expected to have a keen watch on the US Inflation data and Federal Reserve Chair Jerome Powell’s Testimony which shall keep the US Dollar Index volatile thereby influencing the trend of both silver and hold prices. On the MCX, gold prices are expected to trade lower in today’s session.