Gold extends losses, weighed by stronger US data

• Despite a weak dollar, gold dropped to about $3310, continuing recent losses as investors evaluated the Fed’s prospects for rate cuts.
• As early as September or October, President Trump may name his Fed Chair nominee, most likely choosing a candidate who supports more lenient financial regulations.
• On the data front, the US GDP was lowered to indicate a 0.5% decline in Q2, which further supported dovish forecasts. However, durable goods orders posted their largest growth in 11 years, while jobless claims dropped to a five-week low.

Technical Triggers

• As suggested yesterday, if gold prices hold below $3330 (~Rs 97000), they may retrace to $3275 (~Rs 96000), same trend continues. However, it may go towards $3440 (~Rs 99000) if prices continue to rise beyond $3385 (~Rs 98000).
• Silver has achieved the target of $36.75 (around Rs 107,500) on the upside. Now prices are expected to consolidate in the range of $36(~ Rs 105,000) and $37 (~Rs 107,000).

Dr. Renisha Chainani, Head- Research, Augmont – Gold for all