Gold Surges on Middle East Tensions, Eyes on FOMC Meeting

Published on Jan 29, 2024 14:05

Gold futures surged nearly 1% in Asia`s electronic trades on Monday, driven by escalating tensions in the Middle East, sparking increased safe-haven demand. This week, the spotlight is on the Federal Open Market Committee (FOMC) meeting on Wednesday, where the Fed is expected to maintain the policy rate at 5.25%-5.5%. Markets, however, are pricing in a 50% chance of a 25 basis points rate cut in March, as per the CME FedWatch Tool. Economic highlights include the December Job Openings and Labor Turnover Survey on Tuesday and the Employment Cost Index for Q4 on Wednesday. The week concludes with the critical January jobs report on Friday, influencing considerations for potential interest rate cuts. In the Indian market, MCX April delivery bullion futures traded at Rs 62,440, up by Rs 334 per 10 grams.