Gold Update: Profit booking, muted spot demand drag prices - Highlight Investment Research

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Thursday, 18 July 2019

Gold Update: Profit booking, muted spot demand drag prices

Gold prices fell in futures trade today owing to muted spot demand and lacklustre global cues. 

However, a weaker rupee and lower equities offset the fall.

The precious metal came off its two-week highs to trade lower in global markets owing to profit booking.

The dollar index was lower by 0.2% vs. major currencies on Thursday after rising to a one-week high in the previous session on robust US retail sales, however, edged lower as Treasury yields fell on weak US housing market data and concerns regarding the US-China trade war.



Further, the Fed is also expected to cut interest rates by 25bps at the end of the month. 

A weak dollar causes a fall in gold prices.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.48% to 803.18 tonnes on Wednesday from 799.37 tonnes on Tuesday, as per Reuters. 

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