Gold prices have touched a low of $1,660 per ounce (about Rs 48,500/gm) internationally and around Rs 49,000 per 10 gram domestically on prolonged monetary tightening from the US Federal Reserve due to higher inflation.
“It’s hard to build a case for anyone taking a long position in gold ahead of the Federal Reserve’s interest rate decision on Friday since the market isn’t even sure if policymakers will raise rates by 75 basis points or 100 basis points. Investors who are seeking a flight to safety are still looking to the US dollar rather than gold,” says Ketan Kothari, director of Augmont Gold For All, an integrated gold firm with operations from refining to retailing.
He added “A hawkish hike would be another nail in the gold coffin and will likely send prices down to the $1,600–$1,650 range.”
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