Gold price trend hinges on Fed rate cut
The US Federal Reserve meet on Tuesday to decide on inter-bank lending rates is expected to set the price trend for gold here. Gold price on Monday hit a historic high of Rs 13,495 per 10 gm.
“Markets has already discounted a rate cut of 50 basis point, anything above will set the course for pricing pattern,” said Mr Harish Galipalli, head of research, Karvy Commodities.
US Federal Reserve move to cut discount rate it charges commercial banks by 25 basis points to 3.25 per cent pushed up gold and crude oil to new highs.
Gold for immediate delivery climbed $22.04 to $1,024.98 an ounce on the London Metal Exchange after touching an all time high of $1,032.70. Dovetailing gold, silver rose 54 cents to $21.205 an ounce, the highest since March 1980.
Crude oil for April delivery rose $1.59 to $111.80 a barrel on the New York Mercantile Exchange, the highest since trading began in 1983 while Brent crude for May settlement jumped by $1.77 to $107.97 a barrel on London’s ICE Futures Europe Exchange.
Tracking global developments, standard gold in India gained Rs 385 per 10 gm to Rs 13,495, before hitting a new peak of Rs 13,560. Pure gold was also up by Rs 385 per 10 gm to Rs 13,555. Silver moved up by Rs 425 per kg to Rs 25,650.
“The yellow metal was in good demand due to the meltdown of equity market and soaring inflation. The US Fed meet tomorrow will set the future price trend,” said an analyst. Source: thehindubusinessline
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