Gold and silver prices rose in Indian markets today after the US Federal Reserve indicated that it may slow down the pace of future interest rate hikes, which pushed the dollar and lowered Treasury yields. . Gold futures climb 0.55% to near 3-week high on MCX 51,000 per 10 grams while silver rose 2.5% 56224 per kg. In global markets, the yellow metal was up 1% in the previous session and was trading near $1,735.77 an ounce today.
Among other precious metals, spot silver rose 0.5% to $19.22 an ounce, while platinum rose 0.1% to $887.49.
Overnight, the Fed raised rates by 75 basis points and chairperson Jerome Powell said a similar move was possible again, but the pace of the hike could slow at some point.
Fed signal pushes dollar index to three-week low today, leaving greenback-denominated Sleep Less expensive for other currency holders. Lower benchmark US Treasury yield, which fell to hover near two-month low, also supported the bullion. The low bond yield reduces the opportunity cost of holding interest-free gold.
Gold and silver prices extended their gains in the electronic trading session following the Federal Reserve’s decision to hike interest rates as expected. Dollar index reacted negatively after the outcome of the Federal Reserve meeting and slipped below 106.40 and supported both the precious metals,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
He said that gold has support at $1728-1717, while resistance is at $1748-1761, while silver is at $19.02-18.80 and resistance at $19.40-19.62.
“Support to Gold” in Rupee terms 50,650–50,420, while resistance is at 51,060-51,240. Silver has support at Rs 54,750-54,350, while it is at resistance. 55,780-56,210,” he said.
gold traders Now the focus will be on US GDP data for the second quarter which will give further indications about the health of the economy amid growing chatter about the prospects of a recession.
“Comex Gold has been supported by a weakness in the US dollar and bond yields following the Fed’s decision. The Fed raised interest rates in line with expectations and reaffirmed its priority to bring inflation under control. Market players, however, expressed concern over the Fed chairman’s decision.” Appreciated the remarks that the pace of growth will slow down at some point and the Fed will determine policy meet-by-meeting,” said Ravindra Rao, VP- Head of Commodity Research at Kotak Securities.
“There is no major change in the Fed’s stance, but the open-ended approach means we may see continued volatility as market players can assess economic data to determine the next move. Gold has gained momentum after the level consolidation, indicating that momentum has turned positive, but sustained growth remains difficult as the Fed is unlikely to slow down any time soon. (with agency input)
catch all commodity news And updates on Live Mint. download mint news app To get daily market updates & Live business News,