Gold Price Steady; Upcoming Fed Rate Decision To Dictate Prices Going Foward

Gold price internationally in the spot market is more or less trading rangebound. Last at the time of writing at 12:02 pm, spot gold internationally traded at $1718.8 per ounce. Noticeably after falling below $1700 per oz level, gold has swiftly made up for the losses as dollar lost ground.

Now as per analysts, the likely trigger for gold shall be the upcoming Fed rate by a possible 75 bps to be announced today. In 30 days time, the precious yellow metal has cracked by close to 6% as the dollar index gained ground amid macro uncertainty and climbed to 2-decade high as investors returned to safe-haven dollar.

"This is the moment for gold that will break the precious metal's back or offer hope that peak tightening has been priced in," Moya- OANDA senior market analyst is mentioned as saying in a Kitco report. "Investors are growing optimistic that the economic slowdown will contribute to a quicker decline with pricing pressures, which suggests the Fed's tightening job might be done by the end of the year."

If the rate hike is on expected lines Moya believes gold could continue to trade above $1700 per ounce level.

Also, what shall hold importance is the press conference post the Fed meet as there would not be disclosed any macro forecasts until the Fed meet.

Gold prices in India

Defying trend overseas, gold price on the MCX has weakened by a tad and last at around 12:16 pm traded at Rs. 50,570 per 10 gm.