Gold closed marginally lower by -0.01%, settling at 60713, influenced by subdued inflation and signs of economic slowdown in the US. The market sentiment, driven by expectations that the Federal Reserve won’t raise interest rates further, was reinforced by increased unemployment benefit claims, providing the Fed with tools to combat inflation. With the Fed likely to maintain rates in December, attention has shifted to when rate cuts might occur.
Recent data indicated a slowdown in US consumer inflation and the first decline in retail sales in seven months. Indian buyers defied record local prices during Diwali, contributing to gold purchases, while China, a leading buyer, continued accumulating gold holdings, maintaining buoyant premiums. Coin and bar sales picked up, and jewellery demand improved. Dealers in India offered a discount of up to $3 per ounce over official domestic prices, a decrease from the previous week’s $4 discount. In China, dealers charged premiums of $43-$58 per ounce over global spot prices, an increase from the previous week’s $40-$50.
From a technical perspective, the market witnessed long liquidation with a 5.78% drop in open interest to 8111. Gold is currently supported at 60560, with a potential test of 60415. Resistance is expected at 60925, and a breakthrough could lead to testing 61145.
