Indian Gold Price Falls To A 7-month Low Today After Federal Reserve Hikes Interest Rates
September 23, 2022: Indian gold and silver prices fell today along with falling international prices. On MCX, gold futures fell 0.25% near their seven-month low of INR 49,321.
Meanwhile, silver fell by 0.4% to Rs 57,059 per kg. In global markets, spot gold fell 1%, supported by a strong dollar and solid bond yields, after the US Federal Reserve announced another rate hike of 75 basis points overnight. $1,656.97 per ounce.
Yields on two-year Treasuries, which closely track the Federal Reserve’s rates, rose another 4% or more to their highest level since 2007.
The dollar index rose to a 20-year high, making dollar-valued metals more expensive for buyers holding other currencies.
Gold is seen as a hedge against inflation, but raising interest rates to keep inflation in check tends to increase the opportunity cost of holding zero-rate bullion.
Spot silver fell 1.7% to $19.26 an ounce while platinum fell 1.1% to $897.92. Ravindra Rao, Vice President of Research, Commodities at Kotak Securities, said:
The US Dollar Index jumped to its 2002 high as the US Federal Reserve predicted another 0.75% rate hike this year and no rate cuts until 2024.
The US dollar is also supported by safe-haven buying and no significant changes in monetary policy stance from other central banks.
If the dollar continues to rise, it could continue to weigh on gold. However, the Fed’s move was well anticipated, so market reaction may have softened.
” Investors refused to buy gold despite the recent drop in gold prices. Holdings in the world’s largest gold-backed exchange-traded fund SPDR Gold Trust fell 0.12% to 952.16 tonnes on Wednesday from 953.32 tonnes on Tuesday.
Gold Price – Technical Outlook “Gold has support at $1647-1640 and resistance at $1670-1782. Silver has support at $19.05-18.85 and resistance at $19.42-19.55.
In terms of rupees, gold has support at INR 49,040 to 48,880, while resistance is at 49,610 and 49,760 rupees. Silver has support at Rs 56,250 to Rs 55,640 and resistance at Rs 57,680 to Rs 58,110. ”
| Are you an
Entrepreneur or Startup? Do you have a Success Story to Share? SugerMint would like to share your success story. We cover entrepreneur Stories, Startup News, Women entrepreneur stories, and Startup stories
|
Read more Business News at SugerMint. Follow us on Twitter, Instagram, Facebook, LinkedIn