Fed Rate Hike Sends Gold Prices Plummeting
Gold and silver prices plummeted on Thursday as the US Federal Reserve raised interest rates for the first time in three years. The rate hike sent shockwaves through the precious metals market, causing gold futures to decline by Rs 2,000 per 10 grams and silver futures to fall by Rs 4,600 per kilogram.
The Fed's decision to raise interest rates was seen as a signal that further tightening could come in the months ahead. This weighed heavily on the prices of gold and silver, which are often viewed as hedges against inflation. However, higher interest rates make interest-bearing assets more attractive, reducing the appeal of gold.
Manoj Kumar Jain of Prithvi Finmart stated that gold has support at $4,335-4,284 per troy ounce and resistance at $4,400-4,444. Silver has support at $63.40-62.50 per troy ounce and resistance at $65.80-67.00.
Gold prices in physical markets also saw a decline, with standard gold (22 carat) prices in Delhi standing at Rs 1,12,648/8 grams and pure gold (24 carat) prices at Rs 1,22,880/8 grams.