Tuesday Jul 05, 2022

Gold falls this month; Fed meet, Akshay Tritiya to guide prices in May

Gold was on a rollercoaster ride this month and ended lower, marking its first such decline in three months in April.

Price rose in the early half of the month but lost momentum close to $2,000/oz level and corrected sharply to near $1,870/oz level before moving back close to $19,00/oz level.

Gold was on a rollercoaster ride this month and ended lower, marking its first such decline in three months in April.

Price rose in the early half of the month but lost momentum close to $2,000/oz level and corrected sharply to near $1,870/oz level before moving back close to $19,00/oz level.

Gold was on a rollercoaster ride this month and ended lower, marking its first such decline in three months in April.

Price rose in the early half of the month but lost momentum close to $2,000/oz level and corrected sharply to near $1,870/oz level before moving back close to $19,00/oz level.

Gold has been directionless as support from geopolitical risks, inflation concerns and global growth worries is countered by Fed’s monetary tightening outlook which has pushed the US dollar and bond yields higher.

Market players are now gearing for the next big event which is the US Fed’s monetary policy decision in the first week of May.

Comments from the US Fed officials and higher inflationary pressure have fueled expectations that the central bank may raise interest aggressively to curb rising prices.

The general market expectations are that the Fed may raise the interest rate by 0.5% to 0.75-1%. Fed usually alters the lending rate by 0.25% but may consider a bigger hike to highlight its emphasis on getting inflation under control. The Fed may also lay down a plan for balance sheet reduction.

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