Gold yesterday settled up by 0.84% at 59998 as U.S. Treasury yields eased due to the tentative deal on raising the United States debt ceiling over the weekend. A cautious undertone prevails in financial markets as the U.S. debt ceiling deal readies for the vote. Amid much uncertainty over U.S. monetary policy, investors now await U.S. manufacturing readings, the nonfarm payrolls data due later in the week and the upcoming Fed policy meeting in June for directional cues.
The central bank of Iraq reported last week that a larger shift into gold is in the works as it increased its gold reserves by 2% in a single day. Iraq increased its total gold holdings to 132.73 tonnes after purchasing 2.5 tonnes of gold. To increase reserves with a commodity seen as a haven during times of economic adversity and a continuing de-dollarization trend, central banks purchased record amounts of gold last year. Iraq also took advantage of the year's reduced prices to start buying gold again after a four-year hiatus. A year ago, Iraq made a one-time purchase of 34 tonnes of gold, increasing its gold reserves by 35%.
Technically market is under fresh buying as the market has witnessed a gain in open interest by 8.76% to settle at 14939 while prices are up 499 rupees, now Gold is getting support at 59482 and below same could see a test of 58965 levels, and resistance is now likely to be seen at 60308, a move above could see prices testing 60617.
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