Gold Rate Today around ₹60K. Can the Rally Continue with FOMC Meet in Focus?

Introduction:

Today’s gold rate hovers around ₹60,000 per 10 gm, and market experts believe that the yellow metal may remain range-bound for the entire session. Investors are skeptical about the outcome of the Federal Open Market Committee (FOMC) meeting that will take place today. Market experts predict that gold prices in the global market would remain range-bound between $1,950 to $2,010 per ounce, whereas in the domestic market, the precious bullion metal would oscillate between ₹58,700 to ₹60,500 per 10 gm levels.

FOMC Meeting:

The focus is not on the US Fed rate hike but on the US Fed statement on the bank crisis in the US. Investors worldwide expect a roadmap from the central bank of America to combat the series of bank collapses in the US. The US Fed is expected to remain less hawkish and announce no more than a 25 basis points rate hike. Inflation is more due to political reasons such as the Russia-Ukraine war than any economic reason. Hence, the US Fed Chief Jerome Powell may take a less hawkish stance during the FOMC meeting.

Can the Rally Continue with FOMC Meet in Focus?

Investors worldwide are awaiting the outcome of the FOMC meeting, and the focus is on the US Fed’s statement on the bank crisis in the US. This uncertainty can lead to a decline in the gold rally. Moreover, investors need to monitor the Dollar Index, which is expected to dictate gold and other asset movement. If the Dollar Index strengthens, gold prices could decline. The gold rally may also depend on how the world markets react to the FOMC meeting outcome.

Related Facts:

• Gold prices tend to rise during times of economic and political uncertainty.
• The US Fed sets interest rates, which can impact the dollar’s value and, in turn, gold prices.
• The pandemic-induced economic slowdown led to a surge in gold prices in 2020.

Key Takeaway:

Today’s gold rate may remain range-bound due to uncertainty surrounding the FOMC meeting’s outcome, leading to a decline in the gold rally. Furthermore, the rally may also rely on how the world markets react to the FOMC meeting outcome. Investors should keep a close watch on the US Fed’s statement on the bank crisis in the US and the Dollar Index, as they can impact gold prices.

Conclusion:

Today’s gold rate, around ₹60,000 per 10 gm, is expected to remain range-bound due to the uncertainty of the FOMC meeting. The world markets’ reaction to the meeting’s outcome can also affect the gold rally. In addition, investors must closely watch the US Fed’s statement on the bank crisis in the US and the Dollar Index to make informed investment decisions.