Gold Price Rose

Gold prices rose (Gold Rises) by 0.19% yesterday, settling at 58,307 as the U.S. manufacturing sector continued to decline, pushing further into contraction territory. Additionally, activity in the service sector remained relatively stagnant. The S&P Global Flash U.S., manufacturing PMI data, showed a significant drop to 46.3, down from May’s reading of 48.4.

The physical gold market experienced a shift in India, with prices rebounding and demand increasing. This resulted in dealers charging a premium of up to $1.5 per ounce over official domestic prices, compared to a discount of $2 the previous week. However, buying in other major Asian hubs was lackluster. In China, gold was sold at values ranging from $1 to premiums of $5 compared to global spot prices, whereas the range was a $1 discount to a $6.50 premium the previous week.

Switzerland’s gold shipments rose last month after reaching a 10-month low in April. The increase was primarily driven by renewed demand from India, as indicated by Swiss customs data. Swiss gold exports grew to 152,193 kg in May from 113,375 kg in April. Meanwhile, although China’s demand remained low, India’s numbers rebounded in May. India imported 31,199 kilograms of gold from Switzerland, marking the highest level since September 2022, compared to 7,024 kg in April. On the other hand, mainland China’s Swiss gold imports declined to 45,969 kilograms from the previous month’s 52,734 kg.

From a technical standpoint, the market experienced short covering, with a decrease in open interest by 4.18% to settle at 12,581. Despite this, gold prices increased by 111 rupees. Currently, gold finds support at 58,022; if it drops below this level, it could test at 57,737. On the upside, resistance is expected at 58,666, and a breakthrough could lead to prices testing 59,025.

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