Gold rates hit all-time high of Rs 61,490 after US Fed rate hike of 25 bps

Gold prices on Thursday touched its new lifetime high of Rs 61,490 per 10 gm on Multi Commodity Exchange (MCX) hours after US Fed raised its interest rate by 25 bps. The gold prices of late have been rising on a weak dollar. After the US Fed meeting, the gold price touched a new peak of $2081.80 per ounce in the international spot market on Wednesday.  

At 12.30 pm, the domestic gold prices were at Rs 62,180. In the domestic market, the price of 10 grams of 22-carat gold was at Rs 57,000, up from Rs 56,500 per 10 grams on Wednesday.  

The price of 10 grams of 24-carat gold was at Rs 62,180, up from Rs 61,640.   

On MCX, gold futures (June 5) was up by 0.59 per cent or Rs 360 at Rs 61,325 per 10 grams. MCX Gold June futures traded between the range of Rs 61,200 and Rs 60,335 on May 4, 2023. Meanwhile, Silver futures (July 5) was up by Rs 818 or 1.07 per cent at Rs 77,400 per kg.  In the international market, COMEX gold traded at $2050.4 per ounce. 

"Gold price edged higher with spot gold at Comex was trading up by 0.10 per cent at $2040 per ounce in the morning trade. Comex spot gold price surged to all time high of $2085.40 per ounce post FOMC interest rate decision. Federal Reserve signaled a pause in policy tightening from the next meeting after hiking benchmark interest rate by 25 basis point," said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities.

He added that the US Dollar and bond yields dropped after the US Federal Reserve opened the door to a pause in its aggressive tightening cycle, though markets were buffeted by risk aversion amid a rout in regional US bank shares. "We expect gold price likely to fluctuate within upper range with positive bias after hitting all-time high in the previous session. Comex spot gold should trade within the range of $2033 to $2085 per ounce. Comex spot gold has supports at $ 2033/$2019 per ounce and resistance at $2070/$2085 per ounce. MCX Gold June future having supports at Rs 60700/60570 per 10 gram and resistances at Rs 61,400/61,750 per 10 grams," he said.

“Spot gold is seeing huge wild swings in the wake of the US FOMC decision last night. Yesterday, gold was up 1.13 per cent to close at $2039.03 as the US Federal Reserve hiked the Fed fund rate by 25 bps to 5 per cent-5.25 per cent range. The FOMC statement omitted the usual remark some additional policy firming may be warranted,” said Praveen Singh, Associate Vice President, Fundamental currencies and Commodities, Sharekhan by BNP Paribas. 

Cities	22-Carat Gold Rates	24-Carat Gold Rates
Chennai	Rs 57,500	Rs 62,730
Mumbai	Rs 57,000	Rs 62,180
Delhi	Rs 57,150	Rs 62,330
Kolkata	Rs 57,000	Rs 62,180

Gold and silver prices rose as US yields and dollar dipped after the US Federal Reserve hinted it may pause the rate-hike cycle. The marketplace is now looking forward to the European Central Bank meeting on Thursday, and Friday’s April US jobs report. Technically, gold has support at $2034-1922 while resistance is at $2055-2068. Silver has support at $25.67-25.51, while resistance is at $25.98-26.12. In INR terms gold has support at Rs 60,720-60,550, while resistance is at Rs61,170, 61,350. Silver has support at Rs74,950-74,420, while resistance is at Rs76,450–77,050," said Rahul Kalantri, Vice President, Commodities, Mehta Equities.

On Wednesday, the Federal Reserve reinforced its fight against high inflation by raising its key interest rate by a quarter-point to the highest level in 16 years. But the Fed also signalled that it may now pause its streak of 10 rate hikes, which have made borrowing for consumers and businesses steadily more expensive. 

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