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

Gold and silver prices continue to trade steady, as on one end, hawkish comments from Fed official are weighing on prices while, on other Geo-political tension is keeping risk premium high. U.S. Treasury yields rose, with the 10-year note coming off its biggest weekly drop of the year in response to inflation data that boosted hopes the Fed would be able to cut rates by at least 25 bps in September. Bets for a rate cut in September has also not changed much as it continues to hover around ~60% rising from 45% a week back, post US CPI data. Philadelphia Fed President Patrick Harker said the central bank would be able to cut rates one time this year should his forecast play out. Similarly, few other fed officials also mentioned that they are okay to keep the rates where they are and look at the data as they are being reported ahead. Economic data showed manufacturing activity in New York improved in June, but remained in contraction territory with a reading of -6 against the expectations of -12.50.  Focus this week will be on preliminary manufacturing and Services PMI from major economies, US Retail sales data and BOE policy meeting. Gold on domestic front is expected to between the range of Rs.70,800 -71,800.

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