The Fed will make more interest rate hikes next year even as the U.S. economy slides toward a possible recession, Fed Chairman Jerome Powell said, arguing that a higher cost would be paid if the central bank did not control inflation more firmly.
Gold futures on
were trading down 0.58% or Rs 318 to Rs 54,356 per 10 grams. Silver futures fell sharply by 1.67% or Rs 1,155 to Rs 68,147 per kg.
High interest rates have weighed on gold’s traditional status as a hedge against inflation and other uncertainties this year, as they translate into a higher opportunity cost of holding the unsecured metal. productive.
Gold prices fell slightly after the Federal Reserve’s 50 basis point rate hike, but signaled the final rate would be higher than initially expected, ICICI Direct Research said.
“However, a decline in dollar and US Treasuries yields prevented a further decline in gold prices,” he said. “Gold is expected to trade with a negative bias for the day, with the US Fed signaling further interest rate hikes next year,” he added.
Gold premiums in China rose last week as demand picked up after the major consumer eased COVID-19 restrictions, while high prices dampened activity in India.
In the spot market, the highest purity gold was sold at Rs 54,386 per 10 grams while silver was priced at Rs 67,642 per kg on Wednesday, according to the Indian Bullion and Jewelers Association.
Spot gold prices have jumped over Rs 1,600 per 10 grams over the past two weeks, while silver has gained over Rs 5,700 per kg over the same period under review.
NS Ramaswamy, Product Manager,
Securities said the US Fed raised interest rates on expected lines. The monetary policy of the European Central Bank is expected this evening.
“Meanwhile, the People’s Bank of China (PBoC) added 32 tonnes of gold to its reserves in November, its first announcement since September 2019,” he said.
Commercial strategy
“Bullion charts are now showing some profit reservation and look overbought. RSI momentum indicator
is also indicating the same,” said Amit Khare, AVP-Research Commodities, Ganganagar Commodity. He advised traders to take new short positions.
He suggested selling gold and silver near given resistance levels at Rs 54,800-55,000 and Rs 69,500-70,000, respectively. He also advised to book profits near the support levels at Rs 54,400-54,000 and Rs 68,700-68,000, respectively.
Global Markets
Spot gold slid 0.1% to $1,806.11 an ounce by 0035 GMT. US gold futures were little changed at $1,817.80.
Spot silver fell 0.4% to $23.81, platinum lost 0.1% to $1,027.82 and palladium fell 0.1% to $1,914.98.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The Fed will make more interest rate hikes next year even as the U.S. economy slides toward a possible recession, Fed Chairman Jerome Powell said, arguing that a higher cost would be paid if the central bank did not control inflation more firmly.
Gold futures on
were trading down 0.58% or Rs 318 to Rs 54,356 per 10 grams. Silver futures fell sharply by 1.67% or Rs 1,155 to Rs 68,147 per kg.
High interest rates have weighed on gold’s traditional status as a hedge against inflation and other uncertainties this year, as they translate into a higher opportunity cost of holding the unsecured metal. productive.
Gold prices fell slightly after the Federal Reserve’s 50 basis point rate hike, but signaled the final rate would be higher than initially expected, ICICI Direct Research said.
“However, a decline in dollar and US Treasuries yields prevented a further decline in gold prices,” he said. “Gold is expected to trade with a negative bias for the day, with the US Fed signaling further interest rate hikes next year,” he added.
Gold premiums in China rose last week as demand picked up after the major consumer eased COVID-19 restrictions, while high prices dampened activity in India.
In the spot market, the highest purity gold was sold at Rs 54,386 per 10 grams while silver was priced at Rs 67,642 per kg on Wednesday, according to the Indian Bullion and Jewelers Association.
Spot gold prices have jumped over Rs 1,600 per 10 grams over the past two weeks, while silver has gained over Rs 5,700 per kg over the same period under review.
NS Ramaswamy, Product Manager,
Securities said the US Fed raised interest rates on expected lines. The monetary policy of the European Central Bank is expected this evening.
“Meanwhile, the People’s Bank of China (PBoC) added 32 tonnes of gold to its reserves in November, its first announcement since September 2019,” he said.
Commercial strategy
“Bullion charts are now showing some profit reservation and look overbought. RSI momentum indicator
is also indicating the same,” said Amit Khare, AVP-Research Commodities, Ganganagar Commodity. He advised traders to take new short positions.
He suggested selling gold and silver near given resistance levels at Rs 54,800-55,000 and Rs 69,500-70,000, respectively. He also advised to book profits near the support levels at Rs 54,400-54,000 and Rs 68,700-68,000, respectively.
Global Markets
Spot gold slid 0.1% to $1,806.11 an ounce by 0035 GMT. US gold futures were little changed at $1,817.80.
Spot silver fell 0.4% to $23.81, platinum lost 0.1% to $1,027.82 and palladium fell 0.1% to $1,914.98.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)