Gold Market
Gold fell Rs 800 per 10 grams on the MCX while silver gained Rs 1,000 per kg, supported by a subdued dollar and weaker crude oil prices amid global interest rate uncertainty.
Jefferies' Christopher Wood says gold could reach $10,000 over the long term, citing US fiscal pressures and rising Indian gold lending. He advises buying on dips toward $3,800-$4,000.
Gold rose more than 2% on Thursday, reaching $4,361, as a drop in oil prices pushed the US dollar and Treasury yields lower, offsetting the impact of the Fed’s latest rate hike.
The spot gold price emerges from a hybrid of London benchmark auctions and electronic futures trading, with central banks and bullion banks playing key roles.
The LBMA Gold Price auction is a twice-daily benchmark-setting process that differs fundamentally from the real-time spot price traded on exchanges.
Gold prices erased gains and slid after the Federal Reserve hiked rates by 25 bps to a 3.75-4.00% range, with most officials projecting at least one more increase this year.
Gold failed to break above $4,500 and corrected lower, dipping below $4,450 and testing the $4,250 support zone. A bearish trend line at $4,355 is capping near-term gains.
Gold trimmed its intraday losses on Tuesday but remained under pressure from a rising US Dollar and multi-year high Treasury yields as markets awaited a widely expected Fed interest rate hike.
Gold trades near $4,300, well below last month's peak, as the Fed prepares a likely rate hike and the US dollar rallies. Market awaits Wednesday's decision.