Gold prices slide for first time in four weeks as Fed meeting nears; not much room for upside, say experts
Gold and silver prices Today on 15-03-2024 : Check latest rates in your city Now, the prices of the yellow metal will now depend to next week's Fed meeting, where there will be an updated dot plot, and the market is going into the meeting with expectations of a hawkish Fed, as reflected in rising bond yields and a rising dollar index. “Apart from the inflation print the other data's have been indicating a mixed picture of the U.S. economy with manufacturing/ services activity slowing down, unemployment rate ticking up to rising retail sales and lower unemployment claims - keeping sentiments subdued.
The Fed fund futures traders have trimmed bets of rate cut in June to 63-64% as compared to above 75% last week. So, as we go into the week ahead... price momentum could remain volatile and if Fed officials still pitches for a rate cut later in the year, we could see the U.S.
dollar and Treasury yields going down, benefiting gold and equities, however, any contra view would push the bullion down again," Pranav Mer, Research (Commodity & Currency) BlinkX & JM Financial, told Livemint. Gold prices fell after a hot U.S. inflation report dimmed prospects of the Federal Reserve cutting interest rates.
“We expect a relief rally in bonds post-Fed, which will also support gold prices. However, considering the massive run-up of the last three weeks in gold, we don't see significant upside in the near term, even if the Fed is more dovish than market expectations," Amit Goel, Co-Founder and Chief Global Strategist at Pace 360, told Livemint. Also read: Gold price today: Rates move slightly up after an uptick in US inflation; what should be your strategy for MCX Gold? Experts further says that the gold prices are likely to remain in an
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