Precious metal prices fell to nearly a two-week low as investors praised the US economy’s resiliency and reduced demand for conventional safe-haven assets, putting severe downward pressure on bullion prices and dragging them to their lowest level.

Gold and Silver prices have fallen sharply to around $2375 (~ Rs 68000) and $28 (~Rs 81500). The downfall may be due to technical selling and risk-off sentiment.

9% Duty in Gold and Silver led to a sharp fall of 5-6% in domestic gold and silver prices yesterday. Prices are expected to consolidate a bit before moving in either direction.

Precious metals continue to skid amid weak USD demand. Against the background of dovish Federal Reserve predictions, US President Joe Biden’s withdrawal from the presidential campaign pushes some investors to unwind investments based on a Trump victory.

After reaching an all-time high of $2488 (74730), gold prices fell as speculators booked profits and investors were unable to hold onto their gains.

Despite better-than-expected core retail sales figures, gold prices reached a fresh record high of $2488 (Rs 74730). Powell’s statement yesterday suggested that the Fed was becoming increasingly confident that inflation was returning to goal is supporting the gold rally.

The gold price stays close to a nearly two-month high as Fed rate reduction expectations rise. Gold closed last week above important resistance of $2400 (Rs 73000), this has opened doors for the previous high of $2450 (Rs 74500) and a new high of $2500 (Rs 76000) in the coming days if prices sustain above the resistance level.

Gold skyrockets above $2400 as the falling US Inflation and 10-year Treasury bond yield increases Gold’s appeal. The CME FedWatch Tool predicts an 85% chance of a quarter-point rate cut in September, up from 70% on Wednesday, also acts as tailwind for the gold prices.

Despite the absence of the PBoC, global central bank buying continues to support gold prices. If gold surpasses last week’s top of $2,393, it will likely reach the next all-time high of $2450. In the short and medium run, the trend has shifted sideways, but Gold is in a long-term uptrend.

Precious metals prices are trading near resistance levels ahead of today’s critical NFP report. The critical data will play an important role in shaping market expectations about the Fed’s future policy actions, which will boost USD demand and offer a new directional push to Gold and Silver.

Gold and silver have risen, pushing closer to resistance levels, as the minutes of the recent FOMC meeting indicated that the majority of policymakers believe US economic growth is progressively moderating.

Gold and silver prices lack the conviction to break out of the range since it is becoming more widely accepted that the Fed will likely cut interest rates at its meeting in September and that lower borrowing costs in December would again support the bullion price.