Precious Metals edge higher following FED rate hike decision

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Gold and Silver – Kya Lagta Hai
Short-term View (up to 1 week) – Oversold – As Gold and Silver have retraced, prices are oversold, and we could see bottom fishing supporting prices this week.  Long-term View (3-4months) -Positive – Any dips towards 50000-51000 and 62000-63000 should be used as buying opportunities for the target of 55000 and 75000 for Gold and Silver respectively
SPOT Prices
SPOT Gold Daily Price Chart
SPOT Silver Daily Price Chart
Important News and Triggers
  • International News – As informed yesterday, precious metals are expected to rebound after FED decision of rate hike, as per saying “Sell on Rumors and Buy on News”, same thing has started happening as higher rates seem to be dampening growth.
  • Demand & Supply – Global Gold ETF has seen some outflows from last one week. Holdings have reduced from 3329 tonnes to 3317 tonnes in last 7-8 days
  • Economic Data – The Federal Reserve increased interest rates by 50-basis points as expected. The current level of Fed Funds rates is now 75-100 basis points. The Fed will begin to reduce its balance sheet on June 1. The rate move is the largest since 2000 and is in response to burgeoning inflation pressures.
  • Domestic NewsAkshaya Tritiya gold sales is estimated to be 30-40% higher than the last year in India
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