Gold prices saw a marginal decrease of -0.01%, closing at 58,588 due to strong consumer spending, fueled by robust US Monthly Retail Sales in August, surpassing expectations and July's figures. Monthly headline PPI also exceeded estimates, with a growth of 0.7%, contributing to an annual increase in US headline PPI to 1.6%, double the previous release.
However, the US job market saw a slight increase in first-time jobless claims, rising to 220K, though slightly below the expected 225K, marking a deviation from the recent decline trend. This indicates some uncertainty in the labour market. Meanwhile, India witnessed a substantial surge of about 40% in gold imports during August, driven by festive buying. This surge raises concerns about the country's already high trade deficit, primarily due to rising oil prices.
From a technical standpoint, the gold market experienced long liquidation, with a 2.97% drop in open interest, closing at 10,755. Prices also dipped by -5 rupees. Gold's support now rests at 58,420, with a potential test of 58,255 levels, while resistance is expected at 58,685, and a breakthrough could push prices to 58,785.