Gold Price News: Gold Range Bound In Calm Conditions

Gold prices were little changed overall on Tuesday, with the markets seemingly in wait-and-see mode amid a lack of fresh drivers.

Prices moved in a range of $2,389 to $2,412 an ounce on Tuesday, just within the previous day’s range of $2,385 to $2,412 an ounce.

The more stable conditions stood in contrast to the volatility seen in the week ending July 19, which saw prices slump for three consecutive days after hitting fresh all-time highs of over $2,484 an ounce on July 17.

A lack of influential macroeconomic data at the start of the week gave gold traders little to go on for direction, leaving markets looking ahead to Wednesday’s monthly manufacturing data from several countries including India, France, Germany, UK and the US. Then on Thursday, the markets will get an update on the US economy with GDP figures for Q2.

In the exchange market, open interest on gold futures contracts increased for a fourth consecutive week in the week to July 19, according to World Gold Council data: Gold Open Interest Chart 2021 | World Gold Council. Moreover, gold net long positions on the Comex increased by 13% to 897 tonnes in the week to July 16, from 794 tonnes the previous week, the figures showed.

In other news, India has slashed its import duties on gold and silver to 6% from the previous 15%, according to news reports on Tuesday, quoting India’s finance minister Nirmala Sitharaman, in a budget speech. While the move is seen as an attempt to reduce smuggling, the lower tariffs will cut the cost of importing gold and silver, which is likely to boost retail demand in India – one of the world’s largest consumers of precious metals.