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Below the daily gold commentary by Mr. Navneet Damani, Senior VP – Commodity Research at Motilal Oswal Financial Services.

‘Gold is witnessing swings in a narrow range after inching higher by almost 1% at the start of this week. Along with volatility in Dollar index, weak economic data points, increase in expectations that the U.S. Federal Reserve might soon hit pause on its interest rate-hiking cycle is supporting an up-move in bullions. Dollar index hovered around the 100 mark after marking 15 month low last week; US 10Y Yield also trades steady after inching lower in the earlier session. The Fed is expected to raise rates by 25 bps in their meeting next week, keeping them in the 5.25%-5.5% range, CME’s Fed-watch tool also shows more than 95% probability for a 25 bps rate hike in July meeting. The European Central Bank is also expected to raise rates by 25 bps next week. US housing numbers yesterday were reported weaker than expectations putting some pressure on dollar index, focus today will be on the weekly jobless claims, forecast to rise to 242,000 from a seasonally adjusted 237,000 and Phily fed manufacturing index. Broader trend on COMEX could be in the range of $1960- 2000 and on domestic front prices could hover in the  range of Rs 59,650 – 60,300 could be expected.’

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