iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Gold rises as the US currency and rates fall following the Fitch downgrading

2 Aug 2023 , 10:04 AM

Gold prices rose on Wednesday as the US dollar and Treasury yields fell after Fitch cut the country’s credit rating, lowering investor confidence ahead of critical data due this week.

Spot gold was up 0.2% at $1,948.43 per ounce, while US gold futures were up 0.3% at $1,985.60.

The US dollar index and benchmark 10-year Treasury yields fell after Fitch cut the US government’s top credit rating, citing budgetary deterioration over the next three years and rising general government debt.

In times of stress and economic uncertainty, gold, which is valued in dollars, is a popular safe-haven investment. 

Central bankers in the United States expressed optimism that they can overcome inflation without destroying the labour market, but they also stated that doing so will necessitate keeping interest rates high for some time.

Global manufacturing activity remained in a downturn in July, according to private surveys released on Tuesday, indicating that sluggish growth and weakness in China were weighing on the global economy, albeit the picture in the Americas was noticeably brighter than elsewhere.

In June, job opportunities in the United States fell to their lowest level in more than two years, but remained at levels consistent with tight labour market conditions.

Global gold demand excluding over-the-counter (OTC) trade declined 2% year on year in the second quarter of 2023 as central banks slowed their purchases and consumption by the technology sector remained subdued, according to the World Gold Council (WGC) on Tuesday.

According to the World Gold Council, India’s gold demand in 2023 could drop 10% year on year, reaching its lowest level in three years.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported a 0.4% drop in holdings on Tuesday.

Spot silver increased 0.2% to $24.37, platinum remained unchanged at $931.01, and palladium increased 0.5% to $1,246.49.

For feedback and suggestions, write to us at editorial@iifl.com

Gold extends losses as WGC reports weak gold demand, US economic data  misses estimates

Related Tags

  • FED
  • Fitch
  • gold
  • inflation
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.