Gold rate today around ₹60K. Can the rally continue in focus of the FOMC meeting?

bank crisis in america

Speaking on gold price outlook ahead of FOMC meeting, Anuj Gupta, Vice President – Research, IIFL Securities said, “Gold price is expected to remain range bound today as investors await the outcome of FOMC meeting which is going to start from today. However, the focus will not be on the US Fed rate hike but on the US Fed statement on the bank crisis in the US as investors across the world expect a red map from the US central bank to deal with the series of bank collapses in the US. are doing.

Anuj Gupta further said that the US Fed is expected to remain less aggressive and not announce a rate hike beyond 25 bps as inflation is more due to political reasons like the Russia-Ukraine war than any economic reason. “I’m expecting US Fed chief Jerome Powell to take a less hawkish stance at this FOMC meeting today and announce a concrete road map for bailing out US banks from the crisis, including Silicon Valley Bank, Signature Bank, First Republic Bank etc.,” Gupta said.

Navneet Damani, Sr. VP – Commodity Research alluding to the bank crisis in the US Motilal Oswal Financial Services said, “The stakes are solid for a less aggressive Fed in its fight against inflation.” The collapse of the Silicon Valley bank in the US exposed the vulnerability of banks to increasingly high rates, while a drop in Credit Suisse’s shares weighed on the market. created turmoil.” On the other hand, after the ECB announced a 50 bps rate hike last week, all eyes are now on the Fed’s policy meeting to be held from March 21 to 22, 2023. The US Fed is expected to hike rates by 25 bps, although rising prospects of a pause are supporting the move into the safe haven Property, ,

“Major central banks including Fed, ECB, BOJ, BOE announced a coordinated central bank action to increase liquidity through the USD-swap line. Volatility is likely to remain high from these updates. Broader trend on Comex $1985 range 2015 and on the domestic front prices may hover in the range of 59,800 – 60,600 can be expected,” said Navneet Damani

trigger for gold rate today

“Over the weekend, there were plenty of updates about US banking concerns that were slightly lower on the safe haven asset. UBS agreed to buy the 167-year-old. credit Suisse For $3.23 billion and imagine losing up to $5.4 billion in a deal largely backed by Swiss guarantees and expected to close by the end of 2023. Meanwhile, major central banks including the Fed, ECB, BOJ, BOE announced a coordinated central bank action to increase liquidity through the USD-swap line. Volatility is likely to remain high from these updates, said Motilal Oswal expert.

Anuj Gupta on Important Levels to Monitor Gold Prices IIFL Securities He said, ‘The price of gold in the international market is expected to remain stable. from 58,700 60,500 per 10 gram range on MCX and $1,920 to $2,010 an ounce in the international spot market. He also said that the dollar index is expected to remain in the range of 100 to 106 levels. Whether the trend for gold is to be considered bullish or bearish.

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