Gold Prices Slide to $1940 as Inflationary Pressure Eases

Published on Jun 15, 2023 14:14

Gold futures continued to loses lustre in the Asia session today down nearly $25 an ounce as FOMC decided to keep the Fed funds rate unchanged at 5-5.25% after data showed consumer inflation in the world`s largest economy continued to ease.

The yellow metal lost its appeal as inflationary pressures were seen fading. COMEX gold futures front month contract slumped to as low as $1940 an ounce and was recently seen trading down $24.10 or 1.22%. The counter should be finding a good support near $1930-35 levels.

MCX August delivery gold futures were last seen trading at Rs 58771 down Rs 527 or 0.89% per 10 grams. The metal should continue to find support near Rs 58100 levels in the near term. Losses were comparatively low in domestic gold following weakness in Indian currency. The rupee was trading at 82.052 to the dollar after closing at 82.051 in the previous session.

The Federal Open Market Committee (FOMC), led by Federal Reserve Chairman Jerome Powell, unanimously decided to keep the benchmark US interest rate unchanged at 5-5.25%. This marks the first pause in 15 months of consecutive rate increases totaling 500 basis points. The decision suggests a temporary halt in rate hikes, with the possibility of future increases depending on economic conditions.