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

‘Gold prices steadied near two-week highs and was headed for their best week in six ahead of mixed economic data from the US and as market participants await comments from Governors of major central banks including Fed Governor Powell that could guide on future interest rates. US 10Y Yield after dropping by more than 2% in the earlier session is inching higher once again; Dollar index also continues inch higher hovering around 10 week high above 104 mark. Earlier this week, Manufacturing and Services PMI data from major economies were reported well below estimates, supporting an up-move in bullions. However, the number of Americans filing new claims for unemployment benefits fell for a second straight week, US Core Durables goods orders data was also reported better than expectations. Two Fed officials tentatively welcomed a jump in bond market yields as something that could complement the central bank’s work to slow the economy and get inflation back to the 2% target, while also noting they see a good chance that no more interest rate increases will be needed. Ahead of the important Jackson hole symposium, probability chart from CME Fed-Watch tool also witnessed a drop in probability for a pause in September meeting by 5% to 80%. Focus today will also be on the Michigan consumer sentiment data scheduled later in the day. Broader trend on COMEX could be in the range of $1890- 1945 and on domestic front prices could hover in the  range of Rs 58,400 – 59,100 could be expected.’

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