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Gold spot eased last week in a rather cautious trade eying Fed meeting. A stronger dollar also pressured precious metal.

Global Economy

• US Dow jones index moderated last week on cautious trades overlooking Fed session, while European peers edged lower. Asian equity gauges displayed mixed sentiments, where China’s SSE shed 2.41 percent weighed by debt woes. India’s Sensex and Japan's NIKKIE edged higher last week.

• Debt worries loom as China’s property giant Evergrande with nearly USD305 billion in liabilities, is at the brink of default.

• China’s Industrial output eased to 5.3 percent in August from 6.4 percent in July.

• US inflation increased 5.3 percent from a year earlier and 0.3 percent from July.

• US Retail sales unexpectedly increased 0.7 percent in August, while core retail sales surged by 2.5 percent.

Gold

• US Dow jones index moderated last week on cautious trades overlooking Fed session, while European peers edged lower. Asian equity gauges displayed mixed sentiments, where China’s SSE shed 2.41 percent weighed by debt woes. India’s Sensex and Japan's NIKKIE edged higher last week.

• Debt worries loom as China’s property giant Evergrande with nearly USD305 billion in liabilities, is at the brink of default.

• China’s Industrial output eased to 5.3 percent in August from 6.4 percent in July. • US inflation increased 5.3 percent from a year earlier and 0.3 percent from July.

• US Retail sales unexpectedly increased 0.7 percent in August, while core retail sales surged by 2.5 percent.

Outlook

International Gold: Prices continue to be volatile with negative bias in the near future. Ongoing fundaments are not strong enough to break the recent high and take trigger rallies. However, a soft US dollar, firm global equities and easing concerns over pandemic remains weigh down the safe haven appeal of the commodity. Investors continue to follow the meetings of the US Federal Reserve to get a hint of tapering of stimulus measures and performance of US currency that largely influence the short term performance of gold.

Domestic Gold: A strong domestic currency and feeble overseas prices continue to weigh the short term outlook of gold.

Technical View: London Spot: If unable to move past $1800 there are chances of weak bias to continue in the near term. Anyhow major support is placed at $1664. MCX: While prices stay below Rs 45400 weakness to continue the day. Further upticks are seen only a break above Rs 48000.

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