Gold is unchanged, with profit-taking from record highs; traders are awaiting the Fed’s decision

Current gold prices, future gold prices, and gold price forecasts: Despite encouraging global signals for the metal, the gold rate is slightly down on Wednesday, while the silver rate is up 0.25%. Gold April futures were trading at Rs 58,540 per 10 kilos on Multi Commodities Exchange, down Rs 39 or 0.07%. Silver May futures were trading at Rs 68,562 per kg on the MCX, up Rs 168. Reserve’s decision to raise interest rates and its outlook for policy, the price of yellow metal on Wednesday traded in a constrained range globally. Following Tuesday’s 2% decline, spot gold was unchanged at $1,939.59 per ounce. Inching up 0.1% to $1,943.50, U.S. gold futures.

“Gold prices on the COMEX fell by 2.1% on Tuesday, to $1,941 per troy ounce, after briefly crossing the $2,000 mark on Monday. The American banking crisis has eased, which has revived risk attitudes and reduced demand for gold. U.S. government authorities are researching options for temporarily extending the Federal Deposit Insurance Corp.’s coverage to all depositors. The FOMC meeting will be today’s main event. Powell is in a difficult situation as the Fed is trapped between inflation and a banking catastrophe.

While markets wait for the U.S. Federal Reserve to announce its next interest rate decision, gold experienced profit-taking from all-time highs it reached on the domestic front a few sessions ago, amid a minor recovery in U.S. Yields and reducing worries over a financial crisis. Once fears of a larger banking crisis were allayed by the rescue of Credit Suisse, risk assets, such as stocks and oil prices, recovered. In the midst of the greatest financial sector crisis in more than a decade, U.S. Treasury Secretary Janet Yellen told bankers that she is willing to step in to protect depositors in smaller U.S. banks experiencing deposit runs that threaten further contagion.

“Investors are now eagerly awaiting the Fed’s rate decision, which is scheduled for later today and is anticipated to result in a 25-basis-point (bps) rate increase. According to the CME FedWatch tool, markets are pricing in a 14% chance that the Fed will remain unchanged and an 86% likelihood that it would raise interest rates by 25 basis points. Just one day before the BOE policy meeting, today’s attention will also be on UK CPI statistics. On the COMEX, the overall trend may be between $1920 and $1950, while prices domestically may be between Rs 58,400 and Rs 59,000, according to Manav Modi, MOFSL.

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