Gold recovers as traders await US Federal Reserve policy decision, silver rises 1%
Gold price retraces ₹3,500 from record high. US Fed meeting outcome in focus After reaching a nearly six-month high, the dollar softened by 0.2%, resulting in gold becoming more affordable for holders of other currencies. Additionally, benchmark U.S.
10-year bond yields saw a slight decrease. “We expect the FOMC members are to keep rates unchanged, but their forward guidance will be closely watched as a more hawkish tone could push the U.S. dollar and Treasury Yields further higher and weigh on risk assets as well as gold," Pranav Mer, VP - Research (Commodity & Currency) BlinkX and JM Financial, told Livemint.
On April 12, gold reached an all-time peak of $2,431.29, driven by robust acquisitions from central banks and interest from Chinese retail investors. Nonetheless, prices have declined by over 5 per cent subsequently, attributed to easing tensions in the Middle East and diminishing anticipations for prompt interest rate reductions in the United States this year. “The Federal Reserve meeting primarily centers on economic indicators such as GDP, PCE, and job data, rather than solely on interest rates.
Consequently, no interest rate hike decision is expected tomorrow, minimizing potential impacts on both the gold and equity markets. Market analysts are attentively monitoring Federal Reserve commentary for insights into the upcoming June meeting," Rahul Kalantri, VP Commodities at Mehta Equities Ltd, told Livemint. Also read: Gold slips 1% to touch one-week low ahead of Fed meeting, silver dips 2.6% The scheduled announcement of the U.S.
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