Gold yesterday settled up by 0.02% at 46737 as strong U.S. economic data and elevated Treasury yields weighed. Data showed that U.S. economic growth accelerated in the first quarter as fiscal stimulus fueled consumer spending and set the course for what is expected to be the strongest performance this year in nearly four decades.
Citing progress on Covid vaccinations and strong policy support, the Federal Reserve upgraded its assessment of the U.S. economy but maintained its ultra-easy monetary policy as widely expected. A statement from the Fed noted indicators of economic activity and employment have "strengthened," which reflects a modest upgrade from last month when the central bank said the indicators have "turned up recently."
Global demand for gold in the first quarter of 2021 was stuck near its lowest level since 2008 as heavy selling by investors in Europe and North America offset a revival of consumer buying in Asia, the World Gold Council (WGC) said. China's 2021 gold demand will see annual growth and will revert to pre-pandemic levels if there are no dramatic changes to the global economic and geopolitical situation, a World Gold Council (WGC) official said. Physical gold in India was sold at a discount for the first time in 2021 as a spike in coronavirus cases prompted strict restrictions and kept buyers away.
Technically market is under short covering as the market has witnessed a drop in open interest by -2.16% to settled at 10418 while prices up 11 rupees, now Gold is getting support at 46621 and below same could see a test of 46506 levels, and resistance is now likely to be seen at 46835, a move above could see prices testing 46934.
# Gold trading range for the day is 46506-46934.
# Gold settled flat as strong U.S. economic data and elevated Treasury yields weighed.
# Data showed that U.S. economic growth accelerated in the first quarter as fiscal stimulus fueled consumer spending
# Global demand for gold in the first quarter of 2021 was stuck near its lowest level since 2008
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