Gold prices steady at ₹78,500/10g as rupee weakens
Gold prices steady at ₹78,500/10g as rupee weakens
Gold prices are steady despite weak Chinese data and a risk-off start to the week. Market uncertainty and geopolitical tensions are supporting gold’s safe-haven appeal. Gold prices steady at ₹78,500/10g as rupee weakens. Key support and resistance levels to watch are identified.
Gold prices remained stable this morning as weak Chinese data heightened market concerns and led to a risk-off start to the week. The drop in Chinese exports could indicate a potential decrease in gold demand from China. However, the risk-off sentiment continues to bolster gold’s safe-haven appeal.
After an initial dip at market open, gold prices were pushed back towards Friday's highs, trading above $1,660 per ounce. Despite the prospect of less aggressive rate cuts from the Federal Reserve, gold bulls appear dominant.
Currently, market participants expect less than 50 basis points of rate cuts from the Fed by the end of the year. This raises the question: why are gold prices still elevated?
Several factors contribute to this. Firstly, uncertainty around China's economic growth and global growth prospects keeps investors cautious. Secondly, ongoing geopolitical tensions add to the market's risk-averse stance. Although markets are hopeful that Chinese stimulus measures will be effective, it is too early to gauge their impact.
These uncertainties keep market participants on edge, thereby supporting gold’s safe-haven appeal.
Economic Data and Week Ahead
Today's US Columbus Day holiday may lead to thin market liquidity, potentially causing erratic price action for gold. The DXY (US Dollar Index) is also likely to influence gold prices.
Federal Reserve policymakers Waller and Kashkari are scheduled to speak today. Markets will be closely monitoring their comments for dovish signals, which could keep gold prices elevated heading into tomorrow.
With a lack of high-impact US economic data this week, gold prices are likely to be driven by overall market sentiment, geopolitical developments, and Federal Reserve policymakers' remarks.
