Gold faced downward pressure, dropping by -0.46% to settle at $58,432, primarily due to the strong US dollar hitting 2023 highs. The catalyst behind this was the looming possibility of another US interest rate hike within the year. The US 10-year treasury yields surged by 0.6%, reaching a 16-year peak at 4.564%, following the Federal Reserve's clear indication of an impending rate hike and a lower-than-expected projection of two rate cuts in 2024.
Fed officials hinted at more rate hikes, emphasizing the ongoing battle with inflation. Investors are closely monitoring US personal spending data to gauge inflation and anticipate future US policies. Meanwhile, China's net gold imports via Hong Kong surged by 51.4% in August, marking a significant increase from July. Total gold imports through Hong Kong also saw a substantial uptick of 49.6% to 45.237 metric tons.
From a technical perspective, the market experienced long liquidation, with a 24.15% drop in open interest, settling at 4,186. Gold's price declined by -269 rupees. Support levels are at 58,310 and 58,185, while resistance is anticipated at 58,655, with a potential upward move testing 58,875.