The Federal Reserve, as expected, lowered its benchmark policy rate for the third time since September and signalled that rate reduction would halt, causing a sell-off in the precious metals market.
All eyes on today’s FOMC economic projections
The US economic calendar includes the release of housing market data—Building Permits and Housing Starts today. The attention, however, will remain on the key FOMC monetary policy decision.
Precious Metal awaits FED projections for more cues
In anticipation of a 25-bps rate cut on Wednesday, gold and silver investors await the Fed’s interest rate decision and economic forecasts.
Central Bank rate decisions spur volatility in precious metals
It seems that Gold will not fall below $2500 (~Rs 73000) in the upcoming months due to the expectation of lower interest rates, the continued elevated geopolitical risk, and the uncertainty surrounding the Trump administration’s implementation of protectionism policies.
Precious Metal struggles to hold gains
Gold and silver struggle to hold gains, but geopolitical risks, trade war fears, and Fed rate cut bets continue to support the prices.
Gold continues northward journey amid expectation of rate cut
Following the announcement of US inflation data yesterday, gold prices continued their upward trajectory. As prices continue their uptrend, the next level to watch for is the previous high of $2800 (Rs 80000).
Gold extends recovery on safe-haven flows
In Syria, various rebel factions are beginning negotiations to form a government while foreign powers like Israel and Turkey take positions. The increasing uncertainty in an already volatile region supports demand for the safe-haven metal.
Bullion faces tailwind amid renewed Geopolitical tensions
The price of precious metals recovered well from eight-day lows as geopolitical tensions in the Middle East countered the recent increase in the US dollar and the yields on US Treasury bonds throughout the curve.
Gold well supported amid prolonged global uncertainties
The expectation of lower interest rates, ongoing elevated geopolitical risk, and uncertainty around implementing protectionism policies under the Trump administration are the main reasons demand will get supported and find a floor for gold prices around $2500 (~Rs 73000) in the coming months and won’t fall below this level.
Gold trades back and forth with a focus on Employment data
The price of gold fluctuates as rising US Treasury yields reduce its allure in the face of erratic Fed policy. Given the South Korean political unrest, the Syrian civil war, and tensions between Russia and Ukraine, the decline in the price of gold and silver is anticipated to continue to be well-supported.