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Gold steadied as the U.S. dollar and Treasury yields gained

Published 08-08-2023, 02:23 pm
© Reuters.  Gold steadied as the U.S. dollar and Treasury yields gained
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Gold yesterday settled down by -0.18% at 59420 as the U.S. dollar and Treasury yields gained after traders digested Friday's jobs report, with attention turning to U.S. inflation data later this week. The U.S. economy added fewer jobs than expected in July, data showed, but solid wage gains and a decline in the unemployment rate back to 3.5% pointed to continued tightness in labour market conditions. During the first half of 2023, global central banks achieved a historic milestone by significantly increasing their gold reserves.

According to data gathered by the World Gold Council, their combined net gold purchases reached an impressive 387 tons. This figure marks the highest amount ever recorded for a first-half period since the Council began compiling quarterly data in 2000. Venezuela's gold reserves fell by eight metric tons in the year's first half, central bank data showed, continuing a years-long reduction in the reserves amid a prolonged economic crisis. The drop in the first six months of 2023 brought the central bank's total reserves to 61 tons, down from 69 tons in December 2022. The gold reserves were valued at $3.65 billion at the end of June, down $261 million from their value in December.

Technically market is under long liquidation as the market has witnessed a drop in open interest by -2.82% to settle at 14253 while prices are down -107 rupees, now Gold is getting support at 59299 and below the same could see a test of 59179 levels, and resistance is now likely to be seen at 59553, a move above could see prices testing 59687.

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