By learning the ongoing gold price trend, Sachin Kothari, Director at Augmont Gold for All, said, “As the FED maintains hope for three rate cuts in 2024, gold prices reached a fresh high of $2224 (~Rs 66750). The FOMC Statement released yesterday was neutral – not too dovish and not too hawkish. As was largely anticipated, the Fed did not alter its monetary policy during the meeting in March.
Powell hinted that the Fed will soon be seeking to dial down the rate of QT, though he did not say when. Based on the CME Fed watch tool, traders were pricing in a 73.4% possibility that the Fed will cut rates for the first time as early as June. Speculative buying and short squeeze led the gold prices to cross previous highs of $2200 and this rally is expected to continue to $2350 in the short term.
In the row, Colin Shah, MD, Kama Jewelry also expressed on, US Fed Rates Announcement and gold price trend, “The move by the US Fed to keep the policy rates unchanged comes as no surprise on the backdrop of the recently announced US CPI inflation numbers which came out higher than expected. This refuted the chances of an early rate cut as an immediate action.
However, with the Fed hinting at three possible rate cuts by the end of the year, the yellow metal has regained some sheen and touched a new high of Rs. 66,778 in the domestic market. This price hike will drive the attention of the investors towards gold as many will bank on the expectation of the yellow metal to breach the Rs 70,000 mark this year. Having said that, the price trend will witness a cautious rise given the headwinds by crude prices in the near term that will pressurize the upward trajectory of gold prices, both internationally and domestically.”