Gold price shines despite rate hike in US Fed meeting. Should you buy?
Gold rate today: Despite US Fed rate hike by 25 bps in the monetary policy meeting held on Wednesday, gold price today continue to ascend. In international market, yellow metal price went up over 0.30 per cent and hit $1,977 per ounce levels in earning morning deals in Asian stock market.
Gold future contract for August 2023 expiry on Multi Commodity Exchange (MCX) opened higher at ₹59,610 per 10 gm, but soon profit booking triggered and it came down at ₹59,535 levels. However, it continue to remain in the green territory after around 45 minutes of commodity market opening in India.
Likewise, silver rate today opened high at ₹75,800 per kg level and went on to hit intraday high of ₹75,945 levels, within few minutes of commodity market opening. In international market, silver price is oscillating around $25.05 per ounce levels.
On why gold prices are oscillating today, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold prices have surged to five days high because the US Fed rate hike of 25 bps is in line with the market expectations. In fact, the market had already factored in about the 25 bps rate hike outcome from the US Fed meeting." Speaking on gold price outlook, Colin Shah, MD at Kama Jewelry said, "A minor pullback in the currency rate of the US dollar has led to some optimism amongst gold buyers.
In the domestic market, there seems to be a bit of a worry with regard to data projecting a fall this fiscal year in exportation by approximately 10 – 15% this fiscal year. However, with the onset of coming festivities, there seems to be optimism in the rise of purchases towards the end of H2 2023." On outlook for gold price in near term, Sugandha Sachdeva, Executive Director & Chief Strategist at Acme
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