Gold prices fell by 1.04%, concluding at Rs 145,392, influenced by a robust U.S. dollar and increasing anticipations that the Federal Reserve will maintain higher interest rates for an extended period. Investors continued to express concerns that inflation may prove to be persistent, even in light of the ongoing peace discussions surrounding the Iran conflict. Fed Governor Christopher Waller reiterated that forward guidance remains an effective monetary policy tool when applied flexibly, reinforcing expectations of a cautious monetary policy stance.
U.S. services sector activity experienced a deceleration in June, attributed to the diminishing effects of war-related front-loading of orders. However, employment saw a rebound following three months of contraction, underscoring the robustness of the labour market. Physical demand exhibited a mixed pattern, characterised by a deceleration in buying activity in India following a rebound in prices from three-month lows, whereas demand in China showed a modest improvement.
Perth Mint disclosed that sales of gold coins and bars surged by 53% month-on-month in June, reaching a two-month peak, and were 5% above the levels recorded a year prior. Gold holdings in London vaults rose by 0.21% to reach 9,392 tonnes. Meanwhile, China’s central bank continued its gold acquisition trend for the 20th month in a row, purchasing an additional 480,000 ounces in June, even amid declining bullion prices.
Gold is currently experiencing long liquidation, as evidenced by a 1.47% decline in open interest in conjunction with falling prices. Immediate support is identified at Rs 144,745, with subsequent support at Rs 144,090. Resistance is established at Rs 146,310. A sustained move above this level could extend gains toward Rs 147,220.