Gold prices extended gains to touch their highest in more than nine months Says Mr. Navneet Damani, Motilal Oswal Financial Services
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
Below is perspective on Gold By Mr. Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services
“Gold prices extended gains to touch their highest in more than nine months, after the U.S. central bank raised interest rates by an expected 25 bps and comments from Governor Powell were not as hawkish as expected by the market. The US Fed increased its benchmark interest rate by a quarter of a percentage point but warned “ongoing increases” would be needed to bring inflation under control. After this increase, Fed's target range is between 4.5% and 4.75%, the highest level since September 2007. Meanwhile, on domestic front, in Indian Union Budget, the FM announced no change in the gold custom duty, but increased the silver's duty structure for bar and dore aligning it with that of gold. So, the current duty for both gold and silver bar is at 15% (including AID cess). On data front, US Consumer confidence and ADP jobs number were reported weaker than expectations weighing on dollar. Focus now will be on the non-farm payroll scheduled tomorrow. Market participants will also keep an eye on the ECB and BOE policy meeting scheduled later today. Broader trend on COMEX could be in the range of $1935- 1985 and on domestic front prices could hover in the range of Rs. 58,300- 58,980 could be expected.”
Above views are of the author and not of the website kindly read disclaimer
