JKB Financial Services Ltd.

As on : 16-Jan-2024

Other Markets - Bullion Markets
16-Jan-2024 13:11

Gold Retreats Below $2,050; Dollar Strengthen as Rate Cut Expectations Wane

Gold faced downward pressure, dropping below $2,050 per ounce in the Asia electronic trades today, halting a three-day rally amid a strengthening US dollar and rising Treasury yields. Diminished investor optimism for early interest rate cuts by the US Federal Reserve contributed to the decline in gold prices. Despite market expectations indicating a 70% likelihood of rate cuts in March, analysts consider such prospects overly aggressive. Investors are closely watching upcoming US retail sales data and awaiting comments from Fed officials for insights into the evolving monetary policy outlook. In contrast, a European Central Bank official urged caution against premature rate cuts due to lingering inflation and geopolitical uncertainties. MCX gold futures for February delivery trade lower by Rs 94 at Rs 62,465 per 10 grams.

GET IN TOUCH