Gold Rate Today, Gold Price in India on 22 March: Gold witnessed profit booking from all time highs it marked on domestic front few sessions ago.
Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate is trading mildly in the red on Wednesday despite positive global cues for the metal, while the silver rate is up 0.25%. On Multi Commodity Exchange, gold April futures were trading at Rs 58,540 per 10 grams, down Rs 39 or 0.07%. Silver May futures were trading higher by Rs 168 at Rs 68,562 per kg on MCX.
Globally, the yellow metal prices traded in a narrow range on Wednesday as some investors stayed on the sidelines ahead of the U.S. Federal Reserve’s interest rate decision and policy outlook. Spot gold was flat at $1,939.59 per ounce, as of 0318 GMT, after dropping 2% on Tuesday. U.S. gold futures edged 0.1% higher at $1,943.50.
Gold might trade sideways to weak until the FOMC verdict
“COMEX Gold prices declined by 2.1% on Tuesday, to $1,941 per troy ounce, after rising briefly above $2,000 per troy ounce on Monday. Ease in the US banking crisis revived risk sentiments, taking some steam off the yellow metal. US officials are studying ways they might temporarily expand Federal Deposit Insurance Corp. coverage to all deposits. Today’s major event will be the FOMC meeting. The Fed is caught between Inflation and a banking crisis and Powell is in a tough spot.
“We expect the Fed to increase the Fed funds rate by 25 bps to 4.75%-5% target range and median dot plot may slightly shift higher to 5.35% from the 5.1% indicated in December. Powell might try to maintain a hawkish stance, as it is important to contain market sentiments, to curb actual inflation. We might see sideways to weak gold prices until the FOMC meeting concludes,” said Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities.
Gold prices fall from all time highs
“Gold witnessed profit booking from all time highs it marked on domestic front few sessions back, amidst slight recovery in US Yields and easing worries over a banking crisis prompted some investors to cautiously return to riskier assets, while markets await the U.S. Federal Reserve’s next interest rate decision. Risk assets, including equities and oil prices, rebounded after the rescue of Credit Suisse calmed nerves about a bigger banking crisis. U.S. Treasury Secretary Janet Yellen told bankers that she is prepared to intervene to protect depositors in smaller U.S. banks suffering deposit runs that threaten more contagion amid the worst financial system turmoil in more than a decade.
“Investors now keenly await the Fed’s rate decision due later in the day, with a 25-basis-point (bps) rate hike expected. Markets are pricing in an 14% chance the Fed will stand pat and an 86% likelihood of a 25-basis-point hike, according to the CME FedWatch tool. Focus today will also be on UK CPI data, just a day before the BOE policy meeting. Broader trend on COMEX could be in the range of $1920-1950 and on domestic front prices could hover in the range of Rs 58,400-59,000,” said Manav Modi, MOFSL.
Source:financialexpress.com