Gold Steadied as Investors Awaited Fresh Cues from the Federal Reserve

Gold yesterday settled up by 0.28% at 50904 as investors awaited fresh cues from the Federal Reserve on the likely direction of US monetary policy. Market participants are now eyeing Fed Chair Jerome Powell’s appearance before Congress for fresh insight into the central bank’s policy plans. The yield on the benchmark 10-year Treasury note was almost 3 basis points higher at 3.269 percent, while the yield on the 30-year Treasury bond traded 4.5 basis points higher at 3.339 percent.
 
Investors looked forward to the testimony from Fed Chairman Jerome Powell later this week for more signals on the central bank's commitment to bring inflation back to the 2 percent target. Canada's new housing price index for May, retail sales for April, and U.S. existing home sales for May will be featured in the New York session as traders return to their desks after a holiday on Monday. Meanwhile, U.S. Treasury Secretary Janet Yellen said on Monday that the Biden administration is discussing about price caps or a price exception to enhance energy restrictions on Russia, which would push down its oil prices and depress Putin's revenues. The Confederation of British Industry's order book balance fell to 15 in June of 2022 from 26 in the previous month and below market expectations of 22.
 
Technically market is under short covering as the market has witnessed a drop in open interest by -0.61% to settle at 12448 while prices are up 144 rupees, now Gold is getting support at 50568 and below same could see a test of 50233 levels, and resistance is now likely to be seen at 51192, a move above could see prices testing 51481.
 
Trading Ideas:
# Gold trading range for the day is 50233-51481.
# Gold gained as investors awaited fresh cues from the Federal Reserve on the likely direction of US monetary policy.
# Market participants are now eyeing Fed Chair Jerome Powell’s appearance before Congress for fresh insight on the central bank’s policy plans.
# The yield on the benchmark 10-year Treasury note was almost 3 basis points higher at 3.269 percent