Gold price retraces ₹3,500 from record high. US Fed meeting outcome in focus
Gold rate today: Ahead of the US Fed meeting outcome, gold prices across work have come under pressure. On the Multi Commodity Exchange (MCX), gold rates for the June 2024 expiry ended yesterday at ₹70,466 per 10 gm level, around ₹3,500 below its lifetime high of ₹73,958 level, which it had climbed on 12th April 2024.
In the international market, the COMEX gold price oscillates around $2,298 per troy ounce whereas the spot gold price is around $2,288 per ounce level. According to the commodity market experts, gold prices are correcting as the market is expecting that the US Fed may continue with the high-interest rate regime in the FOMC meeting today.
On why gold prices are nosediving ahead of the conclusion of the FOMC meeting today, Anuj Gupta, Head of Commodity & Currency at HDFC Securities said, "Gold prices are falling after the hawkish talks by the US Fed chairman Jerome Powell. We saw an appreciation in gold prices after the better-than-expected US economic data as the market was expecting a rate cut announcement in the US Fed's FOMC meeting.
However, soaring crude oil prices and the Iran-Israel conflict dent the US Fed rate cut hopes." "COMEX Gold and Silver prices plunged on Tuesday as investors remained cautious ahead of the FOMC meeting due on Wednesday where the Fed chair is expected to take a hawkish pivot. Fed chair Jerome Powell’s December dovish pivot gave markets a boost and helped the economy dodge a downturn, with inflation still more than their target," said Kaynat Chainwala, Senior Manager — Commodity Research at Kotak Securities.
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