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Gold rallied to its three-week high as the US dollar and Treasury yields slipped amidst weak economic data points, says Navneet Damani, Senior VP of Commodity Research at Motilal Oswal Financial Services.

Today focus will be on US GDP and Private payroll data, which if reported lower than expectations could further support gains for gold and silver prices, he said.

Broader trend on COMEX could be in the range of $1,915-1,950 and on domestic front prices could hover in the range of Rs 59,000–59,650 could be expected. 

The dollar fell against its major crosses, reversing from earlier gains, after data showed that US job openings fell in July; benchmark 10-year Treasury yields also ticked lower from 10 month highs.

The downbeat Job Openings and Labor Turnover Survey and consumer confidence reports suggest the Federal Reserve may not raise rates as much as previously anticipated, and that’s supporting bullions.

US consumer confidence data was reported at 106.1 against the expectations of 116, raising questions on consumer spending and overall confidence in economic activities, he said.

Probability for a pause in September Fed meeting has also increased from 80 per cent to 88 per cent, according to CME Fed-Watch tool, increasing safe haven appeal for gold and silver prices.

Investors this week will keep an eye on US personal consumption expenditures price index, and nonfarm payrolls for further clues on interest rate trajectory.