Gold supported in volatile trades, WGC says investment demand to stay elevated

Gold is witnessing volatile moves. The metal fell around 1% yesterday as the US Federal Reserve held interest rates steady between the range 4.25% to 4.5% and Federal Reserve Chair Jerome Powell said it?s too soon to say whether the central bank will cut its interest rate target in September. An uptick in treasury yields also weighed and the metal cut gains. However, rising crude oil prices and good bargain buying capped downside and the COMEX Gold futures are currently up 0.27% at $3361 per ounce. Demand trends are holding up for the metal despite sustained spike in prices in recent months. World Gold Council (WGC) stated in latest update that total Q2 gold Gold demand (inclusive of OTC investment) increased by 3% on year to 1,249 tonnes. WGC noted that Investment demand ? for gold ETFs, bars and coins ? is expected to continue at elevated levels, albeit potentially at a slower rate in H2. Central bank buying has slowed but remains healthy and the longer-term trend of adding to holdings remains intact. The high gold price environment continues to stymie gold jewellery volumes, although the flip side is that recycling remains constrained. MCX Gold futures are trading up 0.21% at Rs 99190 per 10 grams after approaching near Rs 99300 per 10 grams earlier in the session.

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