Gold on MCX settled down -0.56% at 28542 after data showed that the U.S. economy grew faster than expected, reinforcing expectations for more U.S. interest rate hikes this year. The potential for the rise of the far right in European elections this year, along with British Prime Minister Theresa May formally triggering divorce proceedings from the EU on Wednesday has served to enhance gold's appeal as a safe-haven investment, negating some of the effects of a strong dollar.
Prospects for the U.S. economy have brightened now that fiscal stimulus from Washington appears more likely, so the Federal Reserve will need to keep raising rates and eventually trim its bond portfolio to avoid an overheating, one of the most influential Fed policymakers said on Thursday. The potential for the rise of the far right in European elections this year, along with British Prime Minister Theresa May formally triggering divorce proceedings from the EU on Wednesday has enhanced gold's appeal as a safe-haven investment.
The European Union will tell Britain on Friday how it aims to negotiate its "orderly withdrawal" from the bloc, limit uncertainties for businesses and pave the way for a close future partnership. SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.14 percent to 832.32 tonnes on Thursday.
The European Central Bank needs to stick to its already laid out policy path, several policymakers argued on Thursday, although a top conservative urged them to leave the door open to a more rapid reduction in stimulus. Technically now Gold is getting support at 28456 and below same could see a test of 28369 level, And resistance is now likely to be seen at 28675, a move above could see prices testing 28807.