Gold prices hold a steady position in spite of the expectation of the rate cut by the Federal Open Market Committee

Gold prices remained stable as fresh U.S. economic data reinforced expectations for Fed rate cuts. Despite flat inflation and increased job openings, global gold demand weakened. Markets await more data before anticipating significant price movements.

Gold prices, however, remained largely unchanged on Wednesday and were trading at 72,367 rupees per 10 grams, up only by 0.05% decline. This stability comes as new economic figures out of the U. S provide further support to markets for a possible reduction in interest rates by the Federal Reserve.

Key points:

1. Federal Reserve Chairman Jerome Powell suggested a shift back toward a disinflationary process but made it clear that more information was required to cut interest rates.

2. PCE price index, the Fed’s preferred inflation gauge, remained unchanged in May with the annual growth rate falling to 2. 6%.

3. New vacancies in the United States rose in May, further signaling easing of the labor market.

4. The import of gold to china through Hong Kong was down by 38% in April from that recorded in March.

5. The demand for gold in India did not improve because it was still expensive and there were expectations of a cut in import duty.

Based on the market analysis the gold market is currently in a state of long liquidation whereby open interest is down 1. 71%. Support for gold in terms of technical support is observed at 72,245 rupees, and resistance at 72,495 rupees.

Also Read: Markets observe the international trends while the gold prices are comparatively more stable in India

The price of the precious metal has further accentuated these economic factors and the anticipation of the future policy decisions by the Fed.