US dollar and gold face off amid mixed economic data

MUMBAI: The US dollar strengthened on mixed economic data while the precious metal fell. Amid mixed economic data, the dollar and gold stood side by side. The market is eyeing the meeting of the Federal Reserve next week. Gold and silver at home followed the world market and softened over the weekend. The dollar weakened moderately against the rupee. Global crude oil prices improved over the weekend.

99.90 gold per ten gram was Rs 60,168 without GST in the Mumbai jewelery market. 99.50 was Rs 59927 per ten grams. With GST, prices were said to be three percent higher. The non-GST price of silver .999 per kg came down to Rs 74,000 to Rs 73,868. With GST, the prices were raised by three percent.

In the Ahmedabad market, gold of 99.90 ten grams was sold at Rs 62000 and 99.50 at Rs 61800. Silver .999 per kg used to be Rs 73800 per kilo. In the world market, gold was priced at $1983.15 per ounce while silver was priced at $24.83 per ounce.

Mixed economic data in the US weighed on the precious metal while the dollar index rose due to fund buying. The GDP figure for the March quarter came in lower than expected at 1.10. On the other hand, jobless claims came down. Jobless claims which came in at 2.46 lakh in the week of April 15, decreased to 2.30 lakh at the end of April 22. With jobless claims falling, the job market is believed to be tight.

In such a situation, there is a prevailing opinion in the market that the Federal Reserve will increase the interest rate in next week's meeting. The dollar index rose to 102.04. In the domestic money market, the dollar fell by 2 paise to Rs 81.83, while the pound gained 8 paise to Rs 101.92 and the euro fell by 42 paise to Rs 89.91.

Crude oil in the world market rose from a low. Nymax WTI was at 75.21 dollars per barrel while ICE Brent crude oil was at 79.11 dollars. Crude oil production cuts by OPEC, which take effect next week, are believed to have supported prices.