The price of gold is currently at 60,000 per 10 grams, and according to market experts, the yellow metal may trade in a range for the duration of the session since investors are concerned about the conclusion of the FOMC meeting, which begins today. According to experts, the price of gold will remain volatile on the domestic market but stable on the foreign market around the $1,950–$2,010 per ounce area. at a level of 58,700, 60,500 per 10 gram. According to him, the US Fed statement regarding the US bank issue is more important than the US Fed rate increase. He suggested gold investors monitor the dollar index, which will likely decide how much gold will move gold and other assets.
bank crisis in america
Anuj Gupta, Vice President – Research, IIFL Securities, commented on the expectation for the price of gold before to the FOMC meeting: “Gold price is expected to stay range bound today as investors await the outcome of FOMC meeting which is going to commence from today. But, investors around the world expect a red map from the US central bank to deal with the string of bank collapses in the US, so the spotlight will not be on the US Fed rate hike but rather on the US Fed statement on the bank crisis in the US.
Anuj Gupta added that since the Russia-Ukraine war and other political factors such as inflation are more important than any economic factors, the US Fed is anticipated to remain cautious and refrain from raising interest rates by more than 25 basis points. In today’s FOMC meeting, Gupta predicted that US Fed Chairman Jerome Powell will adopt a less hawkish stance and present a clear plan for saving troubled US institutions like Silicon Valley Bank, Signature Bank, First Republic Bank, and others.
Navneet Damani, Sr. VP – Commodities Research, Motilal Oswal Financial Services, mentioned the bank crisis in the US, saying, “For a less combative Fed, the stakes in the war on inflation are high. The banks have been made public by Silicon Valley Bank’s demise in the US. The market turbulence has been exacerbated by Credit Suisse’s shares falling and vulnerability to significantly higher rates. On the other hand, everyone is now focused on the Fed’s policy meeting scheduled for March 21–22, 2023, after the ECB last week declared a 50 basis point rate hike. Although a respite is possible, the US Fed is likely to raise rates by 25 basis points, which is encouraging investors to transfer money into safe-haven assets.”
“A coordinated central bank initiative to enhance liquidity through the USD-swap line was announced by major central banks including the Fed, ECB, BOJ, and BOE. As a result of these adjustments, volatility is anticipated to stay high. Prices on the domestic front may range between 59,800 and 60,600, and a wider trend on Comex $1985 range to $2015 can be anticipated “commented Navneet Damani
trigger for gold rate today
“There were numerous reports over the weekend regarding US banking concerns that caused the safe-haven asset’s price to modestly decline. In a deal that is largely supported by Swiss guarantees and is anticipated to finish by the end of 2023, UBS has agreed to purchase 167-year-old Credit Suisse for $3.23 billion and to take on losses of up to $5.4 billion. The Fed, ECB, BOJ, and BOE, among other significant central banks, announced a concerted central bank initiative to raise liquidity through the USD-swap line. These upgrades would probably maintain significant volatility, “said Motilal Oswal, an expert.
Anuj Gupta of IIFL Securities commented on key levels to watch in relation to gold prices, stating that “Gold price in the international market is projected to remain unchanged. MCX prices vary from 58,700 to 60,500 per 10 gram while the international spot market prices range from $1,920 to $2,010 for an ounce. The dollar index is anticipated to stay between 100 and 106 levels, he added. whether the gold trend should be viewed as bullish or bearish.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of o2help. We advise investors to check with certified experts before taking any Investment Decision.
