Gold rates continue to fall from Tuesday On Wednesday, a decline of Rs 54,910 per 10 grams was recorded on MCX. 110 or 0.2%, US Federal Reserve Chairman Jerome Powell said interest rates may need to rise more than previously thought to prevent inflationary pressures. In the currency market, the US dollar continued its charge, touching a three-month high.
,Sleep It is likely to trade with a negative bias for the day due to a stronger US Dollar and rising US Treasury yields. Besides, bullion prices may come under pressure as Fed Chair Jerome Powell’s hawkish comments raised expectations of an interest rate hike of 50 basis points at the March meeting. According to CME’s Fed Watch tool, financial markets have fixed a 70% chance of a 50 bps rate hike at the upcoming meeting. MCX gold is expected to continue its decline towards 54,700 levels after breaking the key support of 54,900,” said analysts at ICICIDirect.
mcx Silver prices also continued to decline and traded 61,920 per kg, less than more 378 or 0.6% and is expected to continue its decline towards 61,500 levels as per ICICIDirect.
US Federal Reserve Will need to raise interest rates more than expected in response to strong recent data and are prepared to move in bigger steps if the “totality” of incoming information shows that tougher measures are needed to control inflation is, Powell said on the first day of his semi-annual, two-day testimony before Congress.
The US central bank had slowed down a 25-basis-point interest rate hike at its last meeting, following large rate hikes last year to fight decades-high inflation, but a slew of data in recent weeks has Expressed concern that the Fed would continue. Monetary policy is tightening.
(with inputs from agencies)
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