Tag: 浙江龙凤AO

Gold Price Today, 19 Sep’22: Gold falls despite positive global cues; US FOMC eyed, check support, resistance

Posted on by

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading lower on Monday, even as yellow metal prices gained globally. On Multi Commodity Exchange, gold October futures were ruling Rs 140 or 0.3 per cent at Rs 49,240 per 10 gram, as against the previous close of Rs 49,380. Silver December futures were trading at Rs 56,841 per kg, up 121 or Rs 0.21 per cent. Globally, yellow metal prices edged higher supported by a weaker dollar, as investors assessed some risk of aggressive rate hikes expected this week by major central banks especially the U.S. Federal Reserve to tame inflation, according to Reuters. Spot gold was up 0.2% at $1,677.89 per ounce, and U.S. gold futures rose 0.2% at $1,686.50.

Also read: Petrol, Diesel Price Today, 19 Sep 2022: Fuel cost unchanged; check rates in Delhi, Mumbai, other cities

Gold gained some momentum after a fall in previous week hovering around the key level of $1680, amidst a steady dollar, as investors assessed some risk of aggressive rate hikes expected this week by major central banks especially the U.S. Federal Reserve to tame inflation. Touching the highs of above 110 level, dollar index retraced by 0.2%; whereas U.S. Yields were steady near the three month highs amidst higher interest expectations. U.S. inflation data reported last week increased the market expectations for an aggressive rate hike by the Fed in the Sept. meeting scheduled this week. There is an 80% probability of a 75bps rate hike according to the CME Fed watch tool. Physical gold demand picked up in India as domestic prices fell ahead of key festivals, while premiums in China climbed further as its currency weakened. Speculators switched to net short position of 10,132 contracts in week to Sept. 13 in COMEX gold, while trimmed net short position in COMEX silver, the U.S. CFTC said on Friday. Broader trend on COMEX could be in the range of $1645-1690 and on domestic front prices could hover in the range of Rs 48,950-49,700.

Also read: Nifty may slip below 17400, resistance at 17777; buy these two stocks to pocket short-term gains

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities

COMEX gold trades marginally lower near $1680/oz as the US dollar and bond yields continue to hold on to recent gains amid positioning for Fed’s rate hike decision this week. Also weighing on price is weaker investor interest and general pressure on commodities. Supporting price is global growth worries and geopolitical tensions relating to Taiwan. Gold has managed to recover from April 2020 lows set last week as Fed’s rate hike has been largely factored in; however price may remain under pressure ahead of the meeting.

Rahul Kalantri, VP — Commodities, Mehta Equities

Gold and silver prices are likely to remain volatile ahead of the Fed policy meeting and fear of global recession, as the Fed is widely expected to hike rates by 75 basis points with traders also pricing in the possibility of a 100 basis point hike. Gold has support at $1662-1650, while resistance is at $1686-1798. Silver has support at $19.18-18.95, while resistance is at $19.62-19.85. In INR terms gold has support at Rs 49,020-48810, while resistance is at Rs 49,480, 49,640. Silver has support at Rs 55,750-55,240, while resistance is at Rs 57,180–57,510.

(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)

Re hits record low on hawkish Fed stance

Posted on by

The rupee on Thursday slipped to record lows against the dollar, after the US Federal Reserve raised benchmark rates by 75 basis points and sounded more hawkish than anticipated. The rupee plunged nearly 90 paise, closing the session at 80.87 compared with 79.98 on Wednesday, the single-biggest drop for the Indian currency since February 24. Apart from the prospect of more rate hikes, the escalating geopolitical risks also weighed on the sentiment.

Meanwhile, bonds sold off, sending the yield on the benchmark bond to 7.312%, up 8 basis points from its previous close of 7.234%. These levels were last seen on August 8.

Also Read: Olectra Greentech sees major FPI participation in its Rs 800-crore fund-raising plan

Jayesh Mehta, country treasurer, Bank of America, said that while the uncertainty in global markets and the consequent volatility could keep the rupee above 80 levels, closer to March it was likely to settle down at below 80 levels. It was not immediately clear whether RBI had intervened in the currency markets.

Most Asian currencies also depreciated against the greenback.

The dollex was trading at 110.65 on Thursday evening (IST) after having gone up to 111 levels in earlier trades. According to Reuters, the gauge had hit a fresh 20-year high of 111.80 at one point but came off when the Japanese yen appreciated after authorities intervened in the foreign exchange market for the first time since 1998. Currency experts do not rule out more strength for the gauge in the coming months.

While the 75 bps hike in the Fed funds rate was in line with expectations, the hawkish commentary came as a surprise. The Fed’s dot plot indicates rates will reach 4.4% by the end of this year, implying a cumulative increase of 125 basis points over the remaining two meetings in November and December. Economists expect rates could move up to 4.6% by end-2023.