Gold seen pressured amid uncertain outlook for rates and economic growth.

Gold yesterday settled down by -0.01% at 60887 as the dollar stood tall amid an uncertain outlook for rates and economic growth. A batch of new economic data underscored current trends of lower inflation and a slower labour market in the United States, strengthening expectations that the Federal Reserve will pause its tightening cycle in its next meeting. Physical demand in India improved slightly as domestic prices eased from recent record highs, while demand was weak in other Asian centres with some dealers offering discounts in top bullion consumer China to attract buyers.

Indian dealers were offering a discount of up to $11 an ounce over official domestic prices down from last week’s discount of $23. Indian gold demand in the March quarter fell 17% to the lowest level in 10 quarters and is likely to remain subdued even during June and September quarters on record-high prices, the World Gold Council said. Investment demand in the gold market continued to improve in April; however, the sector still has a hill to climb to undo the significant selling pressure seen last year and in the early months of 2023. The WGC said that global gold-backed exchange-traded products saw inflows of 15 tonnes in April, valued at $824 million.

Technically market is under long liquidation as the market has witnessed a drop in open interest by -6.33% to settle at 12830 while prices are down -5 rupees, now Gold is getting support at 60582 and below same could see a test of 60276 levels, and resistance is now likely to be seen at 61137, a move above could see prices testing 61386.