JKB Financial Services Ltd.

As on : 27-Jun-2023

Other Markets - Bullion Markets
27-Jun-2023 15:25

Gold Range-Bound with 6% Year-to-Date Gain

Gold remains range-bound in its trading, with volatile movements observed in the previous week resulting in a loss of over $40. In the year 2023, international gold has recorded a gain of nearly 6%. Over the course of the month, it has risen by approximately 2%, although it experienced a decline of over 2% last week.

The COMEX gold upfront month contract is currently priced at $1935.3 per ounce, representing a modest increase of $1.5. The metal's trading range last week spanned from $1968.70 to $1919.50, indicating a consolidation phase.

To establish a potential upward breakout, it is crucial for gold to surpass the $2000 mark, while a downside breakout would require a breach of $1880. Otherwise, gold may continue to trade within this range in the near term.

In domestic markets, MCX gold futures for August delivery are trading at Rs 58431 per 10 grams, exhibiting a slight gain of Rs 19. The price has fluctuated between Rs 58096 and Rs 60377 throughout the month, resulting in a 3% decline overall.

On data front this week, US housing market updates this week will feature April home prices and May new home sales. The Bureau of Economic Analysis (BEA) will release the Personal Consumption Expenditures (PCE) Price Index, which is the Federal Reserve's preferred inflation gauge. Additionally, consumer sentiment readings from the Conference Board and University of Michigan will be published, along with the final estimate for first-quarter GDP. The Eurozone will also release inflation and unemployment data.

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