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MTECHTIPS:- Precious Metals Preview: Gold Looking Bleak As Dollar Stays Firm

MTECHTIPS:- Precious Metals Preview: Gold Looking Bleak As Dollar Stays Firm

Gold continues to witness selling pressure amid lack of speculative buying. Strong gains in US dollar are keeping a tab on the yellow metal. The US Institute for Supply Management’s services sector index rose to 60.3, its highest level since August 2005. These boosted views the Federal Reserve will raise rates in September, more than offsetting weaker-than-expected US private hiring figures for July. Atlanta Fed chief Dennis Lockhart, a voting member at the US central bank’s policy committee, also said it would take significant deterioration in the U.S. economy for him to not support a rate hike in September. The US equities were under pressure following this and Gold stayed under stress after breaking below $1090 per ounce mark in intraday moves. The US dollar index rose above 98 levels to strike its highest level in three and half months and continues to hover around the same mark today. COMEX Gold is quoting at $1084 per ounce, down 0.15% on the day. MCX Gold futures for October dropped well under Rs 24700 per 10 grams mark in last session and can test lows around Rs 24600 today given the overwhelming bearishness.
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