Gold Falters as Dollar Rises Ahead of Fed Meeting

Published on Mar 19, 2024 14:35

Gold futures edged lower in Asian electronic trading, influenced by the ongoing strength of the US dollar ahead of the Federal Reserve`s policy meeting. The dollar index has surged above 103.5, marking its fourth consecutive session of gains as investors scale back expectations of early interest rate cuts. Meanwhile, the Bank of Japan (BOJ) officially ended its negative interest rate policy at its March meeting, raising its benchmark interest rate from -0.1% to a range of 0% to 0.1%, the first hike in 17 years. The BOJ also abolished its yield curve control policy for 10-year Japanese government bonds, which had been in place since 2016. In contrast, the Reserve Bank of Australia (RBA) maintained its cash rates at 4.35% during its March meeting, citing concerns about economic slowdown despite previous rate hikes. MCX April bullion futures traded lower by Rs 142 at Rs 65,466 per 10 grams.