Quote on Gold by Ashish Rajodiya, Head – Commodities, PL Capital
Below the Quote on Gold by Ashish Rajodiya, Head – Commodities, PL Capital
“Gold slipped on Monday, with MCX gold at Rs1,49,150 per 10 grams, down Rs1,245, while silver held firmer at Rs2,26,050 per kg, up Rs173. Spot gold is hovering around $4,135 an ounce after losing more than 3% last week and about 6% over the past month. The metal is caught between two opposing forces. Friday's weak US jobs report, with payrolls up just 29,000 against expectations of 90,000 and unemployment edging up to 4.2%, has pushed the odds of an October Fed rate hike down to about 18%, from near 70% earlier in the week. Yet that relief has done little for bullion, because Treasury yields are still sitting at multi-decade highs and a firm dollar keeps raising the cost of holding a non-yielding asset. The broader view is sideways, with the metal likely to stay range-bound between support at Rs1,45,900 and resistance at Rs1,51,500. The Fed's October policy decision is the next trigger. A clear signal that the hiking cycle is over, along with easing yields, could lift gold toward the top of that range, while a hawkish tone or a fresh surge in yields would put the Rs1,45,900 floor to the test.”
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