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Below is Commentary on Gold By Mr. Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services

Gold price continue to inch lower on the back of stronger Dollar and hawkish comments from U.S. Fed officials which  weighed on safe haven assets; while markets looked for more clarity around U.S. debt ceiling negotiations. Minneapolis Fed President Kashkari mentioned that the Fed may be will have to go to   the  north of 6%, to get inflation back to the Fed’s 2% target, while St. Louis Fed President James Bullard said that more two rate hikes are needed in this year. Biden and House Speaker Kevin McCarthy could not reach an agreement on Monday on how to raise the U.S. government’s $31.4 trillion debt ceiling with just 10 days to the deadline, but pledged to keep talks on. Markets await the minutes of the latest U.S. FOMC meeting due tomorrow.  Markets are pricing in 80% chance of rates being held steady next month, yet a 20% chance of a 25bps hike, according to CME Fed-Watch tool. Focus today will be on a few housing numbers from the US and preliminary manufacturing and service PMI data from major economies.’

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