Sharp fall in Gold price after Fed blow

It was seen that the Gold price in the last week crashed over ₹2000 per 10 gm at the Multi Commodity Exchange (MCX). According to the commodity experts, weakness in the yellow metal price is due to the US Fed’s announcement to hike interest rates twice in 2023 and the US Dollar (USD) gaining strength against major global currencies.

According to the commodity experts, weakness in the yellow metal price is due to the US Fed’s announcement to hike interest rates twice in 2023 and the US Dollar (USD) gaining strength against major global currencies. However, they maintained that the precious metal price crash is temporary and gold investors should see this dip as a buying opportunity.

Asked about gold price outlook Amit Sajeja, Vice President — Research at Motilal Oswal said, “Decline in yellow metal due to the US Fed announcement to hike interest rate is temporary. I am expecting a trend reversal in the next three to four trade sessions. USD was trading sideways for the last few weeks and this Fed announcement worked as a trigger for the US bond yield and USD rise. This sentimental rise in bond yield and USD is expected to calm down in next three to four days and hence trend reversal is expected in the yellow metal in next three to four days.”

In the current market situation NS Ramaswamy, Head of Commodities at Ventura Securities Ltd is expecting gold price to go up to ₹45,500 per 10 gm at MCX.

Amit Sajeja of Motilal Oswal advised gold buyers and investors to buy gold around its possible bottom expected in next three to four days and said “One should wait for the trend reversal in the gold price that is expected in next three to four days and buy gold for the target of ₹48,500 in next one month after the trend reversal.”

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