Gold Market
Gold and silver prices dropped sharply on the MCX on Thursday after the US Federal Reserve raised interest rates and signalled further tightening. Easing oil supply concerns added to the pressure.
Gold prices fell more than 1% after the US Federal Reserve raised interest rates and signalled further increases, pushing the dollar higher and pressuring non-yielding bullion.
Gold prices rose on September 16 supported by a weaker US dollar. Traders awaited the Federal Reserve's policy decision, with markets pricing a 90% chance of a quarter-point rate hike.
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 traded around $4,290 an ounce after falling to a five-week low, as Middle East oil disruptions reinforced expectations of a Federal Reserve rate hike this week.
Spot gold dropped 0.9% to $4,308.24 as traders priced in an 89% chance of a US rate hike this week, following hot inflation data and rising oil prices.
The Federal Reserve faces a tough call at its September meeting, but with US debt at $40 trillion and a fragile economy, the outcome may matter little for gold investors in the longer run.
Gold edged lower on Monday as rising oil prices fuelled inflation worries. Traders now price in an 86% probability of a US rate hike, a headwind for the non-yielding metal.
Gold trades in a narrow range just above $4,300 as a resilient US dollar and expectations of hawkish decisions from the Fed, BoE, and BoJ this week cap gains.