Bullion prices are consolidating in a range as traders are currently analysing in his remarks on Wednesday, Jerome Powell, the chairman of the Federal Reserve, stated that it would not be appropriate to lower interest rates until they were confident that inflation was heading toward their target of 2%.
Gold sinks below $2300 on hawkish FED
As the Fed kept its fund’s rate constant for the sixth consecutive meeting, citing a strong labour market and a lack of success in fighting inflation, gold prices fell below $2300.
Gold and Silver trades sideways, waiting for cues
It is currently anticipated that the central bank would only start reducing rates in September or maybe in the fourth quarter. Higher rates over extended periods of time are not good news for gold since they raise the opportunity cost of holding the yellow metal.
Precious Metals stays elevated
After this week’s price correction in Gold and Silver, oscillators are in the mid-zone now, after trading in the overbought zone for 20-25 days. As forecasted, Gold and Silver have seen healthy correction after a sharp run. Now further trends would be decided purely on the fundamentals, which are bullish.
Precious Metals gathers momentum after weak US GDP numbers
Following the US Q1 GDP numbers, which came in 1.6% lower than expected (2.5%), gold prices rose yesterday. Higher Treasury rates are supported by a sharp increase in Q1 inflation to 3.7%, which dampens prospects for an early reduction in Fed policy.
Gold and Silver consolidate around $2300 and $27 respectively
Despite a stronger US dollar and higher US Treasury rates, gold recovers from recent losses thanks to Chinese market demand. Gold prices got support around $2305 and prices have reversed and it is expected that prices will be consolidating between $2300-2350.
Gold and Silver get supports after steep fall
Gold prices got support around $2305 and prices have reversed and it is expected that prices will be consolidating between $2300-2350. While Silver has got strong support around $27 and an uptrend line extending from $22 to $30 on Daily charts.
Gold and Silver nosedives as Middle East tensions ease
As forecasted, gold prices have fallen 5.5% to $2310 (Rs 70500) now after touching a high of $2448 (~Rs 74000) in the first week of April and trading stable last week as Middle East tensions ease. Even Silver prices have fallen 10% to $27 (~Rs 80000) now after touching a high of $30 (~Rs 86000).
How long Middle-East Tensions can hold up Bullion Price?
Chaos in the Middle East continues to generate a geopolitical safe-haven bid in the Gold and Silver market, but there are signs that the precious metal’s bull run is losing momentum.
Gold sustains above $2400 amid risk aversion
The financial markets are seeing a surge in risk aversion following the confirmation that Israeli rockets had attacked an Iranian target, hence intensifying geopolitical tensions in the Middle East.