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Below the Quote on Gold commentary by Mr. Navneet Damani, Senior VP – Commodity Research at Motilal Oswal Financial Services

‘Gold continue to hover around its all-time high levels, on the back of weakness in the Dollar amid uncertainty over U.S. interest rate cuts, while increased safe haven demand also aided prices. Following Gold's footsteps, Silver too marked an all-time high on domestic front, amidst a sharp rally in industrial metals. Persistent geopolitical tensions in the Middle East and between Russia and Ukraine, coupled with a devastating earthquake in Taiwan, spurred safe haven plays into bullion and other precious metals. Fed Governor and officials’ comments remain mixed regarding the pace of interest rate cuts in this year. Governor Powell in his comments yesterday mentioned that the interest rates have peaked for this cycle, however they will still watch the economic numbers and inflation trend before taking any decision. Governor Powell believes that the monetary policy is tight. Economic data points from the US are also reported a bit mixed, but no major impact is being seen on the metal prices. US factory orders and ADP employment change were reported better than expectations, while US JOLTS and Services PMI were reported better than expectations. Dollar index fell from their recent peak of 105 to 104.20, however US 10Y yields are higher hovering above 4.3% mark. Focus now shifts to comments from several Fed officials who could prepare us for US central bank’s monetary policy path ahead. The nonfarm payrolls data scheduled later this week is very important to watch for as, sticky inflation and strength in the labor market are the two biggest considerations for the Fed in altering interest rates this year.

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