Gold prices in Kenya traded near one-month lows when Multi Commodity Exchange futures fell 0.2 percent to 76,326.38 shillings per 10 grams. Silver futures however rose 0.7 percent to 83,925.25 shillings per kg.
In global markets, gold remained flat ahead of the key US inflation reading. Spot gold traded held its ground at 206,329.24 shillings per ounce while silver rose 0.7 percent to 2,275.82 shillings per ounce.
As of 12th September 2022, gold Price in Kenya stood at 6,673.9 shillings for gram 24K, 6,395.8 shillings for gram 23K, 6,117.7 shillings for grams 22K, and 5,839.6 shillings for gram 21K. The 10 grams gold rate is 66,738.8 shillings.
According to market analysts, the yellow metal is flat due to various issues such as the weaker US dollar, China’s virus concerns, and Europe’s energy crisis countered by the monetary tightening stance of the Fed and other central banks.
Other factors such as the continuing ETF outflows, and concerns about Chinese consumer demand are also things investors should watch out for in the long and short run.
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The US Consumer Price Index data is due tomorrow and could offer cues on the size of the Fed’s rate hike. Analysts expect August numbers to come in at 8.1 percent, slower than the 8.5 percent print for July.
The markets are largely expecting the Fed to raise rates by 75 basis points this month. The bank’s policymaking committee meets on September 20-21.
Gold got a boost as the dollar index hovered close to its lowest level in nearly two weeks. The higher interest rates increase the opportunity cost of holding the non-yielding bullion and boost the dollar, in which gold is priced.
The yellow metal has support at $1716-1702, while resistance is at $1735-1744. Silver has support at $18.45-18.28, while resistance is at $18.95-19.15.
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