After the recent US Federal Reserve meeting, where interest rates were maintained at a 23-year high for the fifth time in a row and indications were given for three cuts this year, the price of gold continued to rise. The April 2024 expiry gold futures contract on the Multi Commodity Exchange (MCX) started the day with a higher opening price of ₹66,100 per 10 gm. Within minutes of the commodity market’s opening, it reached an intraday high of ₹66,778 per 10 gm.
US Fed Chair Jerome Powell emphasised the need for further evidence of declining prices but expressed optimism that confidence will be achieved and rate cuts will follow, according to most observers.
What did the experts say about the increase in gold prices?
According to Chris Weston, head of research for Pepperstone Group Ltd., last night’s developments gave gold traders the go-ahead to reenter the market. The Federal Reserve has indicated that it currently has a tolerant stance towards the observed inflation and is also tolerant of the fact that the strength of the labour market will not be hindered.
Spot gold prices on March 21?
Spot gold increased by 0.7% to $2,201.94 per ounce as of 9:40 a.m. in Singapore. The Bloomberg Dollar Spot Index saw a 0.2% decline, while silver, platinum, and palladium all experienced gains.
What is driving the increase in gold prices?
Gold prices have experienced a significant increase since mid-February due to factors such as geopolitical tensions and increased buying by central banks, particularly in China. Experts think expectations for a more relaxed monetary policy in the US have contributed to the rally.