Prithviraj Kothari, on gold prices during the Federal Reserve

Nov 06, 2023

Mr. Prithviraj Kothari, MD CEO of RiddiSiddhi Bullions Limited (RSBL)

Gold prices are trading steady around Rs 61000, supported by a weaker dollar and Treasury yields after the Federal Reserve struck a less hawkish tone than expected, although gains in gold were limited by increased risk appetite.

As was generally anticipated, the central bank kept interest rates unchanged on Wednesday. Markets, however, were pricing in a lower likelihood of any additional rate hikes following remarks made by Fed Chair Jerome Powell, who also noted that financial conditions have significantly tightened in recent months. Gold prices, if it sustains above 61100, can rise to 61400. If it sustains below 60700, can retrace up to levels of Rs 60200, due to the profit-booking of a steep rally.

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