Quote on Gold Prices by N S Ramaswamy, Head of Commodity & CRM at Ventura
Below the Quote on Gold Prices by N S Ramaswamy, Head of Commodity & CRM at Ventura.
Gold prices have corrected sharply after the recent rally, amid a sharp rise in U.S. Treasury yields and growing expectations of further Federal Reserve tightening. The U.S. 10-year Treasury yield has risen above 5.2%, its highest level since June 2007, while the 30-year yield has climbed to around 5.52%, its highest since 2004. Lingering geopolitical tensions around the Strait of Hormuz and West Asia are adding to inflation concerns, contributing to a stronger Dollar Index and higher bond yields, which are weighing on gold. Meanwhile, stronger-than-expected U.S. economic data has reinforced expectations of further rate hikes, with September Composite PMI rising to 58.4, its strongest pace in more than five years. This week, markets will focus on Core PCE inflation data, the Fed’s preferred inflation gauge, and final GDP data, both due Wednesday, while Nonfarm Payrolls are due Friday. Potential U.S.-Iran talks this week will also remain in focus. In the near term, gold prices are likely to remain sensitive to immediate inflation concerns and the potential response of global central banks. The near-term trend remains slightly bearish. MCX Gold December: Trading near 149,427. Immediate resistance is placed at 151,000, 153,500 and 155,500, while support is seen at 148,000, 145,000 and 140,000. COMEX Gold December: Trading near 4,194. Immediate resistance is placed at 4,260 and 4,350, while support is seen at 4,130, 4,050 and 4,000.
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