Even though volatile swings will be observed with a focus on the highly anticipated Fed’s meeting outcome, gold looks poised to test levels of around ₹60,000 per 10 gm and $2,000 per ounce in the near term. Speaking on gold price outlook for near term, Sugandha Sachdeva said, "With gold prices having comfortably breached the key hurdle of $1,930 per ounce, the outlook for next week indicates a continuation of the bullish momentum in the early part of the week. Investors are advised to remain vigilant on the US Fed meeting, in which it is unclear how much the interest rate hike will be." However, the Fed is likely to remain accommodative on monetary policy as long as inflation remains stable. Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart said, "Gold will benefit from any pause in the Fed's rate-hike cycle, demand for gold against the dollar will increase, and the opportunity cost of holding a non-yielding asset will also be low. Anuj Gupta of IIFL Securities said that much will depend upon the outcome of US Fed's FOMC meeting scheduled from 21st March to 22nd March 2023 as any further hike in US Fed rate hike may further fuel the gold price rally.Įxpecting US Fed to turn dovish, Sugandha Sachdeva said that the collapse of three prominent US banks - Silicon Valley Bank, Signature Bank and First Republic Bank - had raised expectations that the Fed could turn dovish and dial back aggressive tightening to allay market fears of financial stress.
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