Weekly Outlook on Gold

Gold prices dipped slightly in Asian trading on Friday, though they maintained substantial gains from the previous session. This uptick was due to weaker-than-anticipated U.S. inflation data, which bolstered expectations for a potential interest rate cut in September. 

Gold prices dipped slightly in Asian trading on Friday, though they maintained substantial gains from the previous session. This uptick was due to weaker-than-anticipated U.S. inflation data, which bolstered expectations for a potential interest rate cut in September. 

U.S Inflation & Labor Data: 

Recent reports show U.S. headline inflation decelerated to 3% in June, the lowest in a year, with the annual core rate declining to 3.3%, marking a three-year low. Revised U.S. payroll data further indicates a weakening labor market, aligning with the Federal Reserve's conditions for rate reductions. However, Fed Chair Jerome Powell has stressed that interest rate cuts will only occur once inflation trends sustainably toward the 2% target.

COMEX Gold: 

Gold prices have rebounded strongly and are poised for further gains if they maintain above key support levels. Traders should watch for movements around the resistance level of $2,465, as a break above could indicate a sustained bullish trend. The broader market sentiment and potential Federal Reserve actions will play a crucial role in determining the future direction of gold prices. 

Overall, gold has shown resilience and potential for further gains, it remains crucial for traders to watch for key technical levels and broader market signals. On the downside, support levels are identified at around $2,370 and $2,335. The price needs to stay above these supports to avoid further declines. On the upside, the primary resistance level is at $2,465. A sustained move above this level could signal a bullish trend continuation.

MCX Gold:

MCX Gold prices are currently trading above the 50-day moving average, indicating a short-term bullish trend. A momentum indicator RSI reading is above 60 with positive crossover on the daily scale.   On the downside the crucial support lies at ₹72000 followed by ₹71400 levels. While, immediate resistance is seen at ₹73,600 and ₹74,000 levels. 

Important Gold Price Levels: