Gold prices hovered close to the flatline even as stocks and commodities crumbled amidst the unprecedented Covid related situation in China. The strict Covid curbs triggered rare protests in China, setting alarm bells in world markets regarding repercussions on the global demand and growth situation.
The increased hopes of a Fed pivot caused the Dollar to weaken against major currencies, causing the Dollar Index to drop to 105.32. It is currently at 105.66, lower by 0.28 percent on an overnight basis. The peak for the day was 106.52.
Spot Gold declined 0.09 percent to trade at $1,753.15 per troy ounce. The day’s range has been between $1,746.01 and $1,763.74.
Gold Futures for December settlement weakened 1.4 points to trade at $1,752.60, down 0.08 percent on an overnight basis. Prices oscillated between $1,745.80 and $1,763.45.
Spot prices traded mildly higher than futures prices, implying mild backwardation.
The precious metals market is also anxiously awaiting the non-farm payrolls data due on Friday, for cues on the strength of the job market and headroom available to the Fed for raising rates further.
The material has been provided by InstaForex Company – www.instaforex.com