Gold Jumps On Safe Haven Demand Ahead of Fed

Published on Jul 26, 2023 14:10

Gold futures jumped up nearly $10 an ounce on safe haven demand as ahead of the Fed rate outcome later today. Losses in Asia and Europe markets also lured investors towards bullion.

The dollar index came under slight pressure and fell below 101 mark, trading down 0.20%. It is widely anticipated that Fed will make a 25 bps rate hike today, and investors are also looking for clarity on whether the central bank will conclude its tightening campaign or continue raising rates beyond July.

MCX bullion futures for august delivery are trading up Rs 291 at Rs 59480 per 10 grams. Investors can watch for resistance near Rs 59640 and 59770 levels.

The market participants will closely monitor Fed Chair Jerome Powell`s post-meeting remarks for insights into the central bank`s future actions. Traders are also keeping an eye on the Fed`s preferred PCE inflation gauge and the advance estimate of Q2 GDP growth in the US later this week.