Gold Rate Today: Yellow metal slips on Fed Chair’s hawkish commentary. What should traders do in Dhanteras trade?
Federal Reserve will not hesitate to raise interest rates further, if necessary, to achieve its 2% inflation target, took some sheen out of the yellow metal on Friday as bullion traded in the red in the early trade.
At 9:30 am, MCX December gold futures were trading at Rs 60,218 per 10 gram, down by Rs 64 or 0.11% from the Thursday closing price. Meanwhile, the December Silver futures were trading at Rs 71,120 per kg, lower by Rs 93 or 0.13%.
On Comex, gold futures were trading at $1,951.30 per troy ounce on Friday, down by $6.50 or 0.33% while silver futures were trading at $22.545, lower by $0.183 or 0.810%.
The dollar index was trading flat at 105.89 against a basket of top six currencies, down by 0.02 points or 0.02%.
The December gold futures ended at Rs 60,327 on the MCX on Thursday, up by Rs 318 or 0.53% while the December Silver futures settled at Rs 71,390, higher by Rs 177 or 0.25%.
«Spot gold was able to find support at the crucial level of $1945.
It extended its recovery to $1966 ahead of the Federal Reserve Chair Powell's remarks in a panel discussion on ' monetary policy challenges in a global economy', which was organised by the IMF. Powell's remarks were hawkish as he said that they were not confident that monetary policy has reached a stance sufficiently restrictive to bring down the inflation to the desired 2% goal.
He added that the Federal Reserve will not hesitate to hike rates further if appropriate. He warned against inflation headfakes,» Praveen Singh–Associate Vice President, Fundamental Currencies and Commodities, Sharekhan said.
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