Gold`s Glitter Fades as the Mighty Dollar Gains Strength

Published on Sep 21, 2023 15:10

Gold prices slumped near $1,940 per ounce today driven by a stronger US dollar, following a hawkish stance from the US Federal Reserve. While the Fed kept interest rates unchanged as expected, it signaled a likely rate hike later in the year.

Investor attention also turned to the Bank of England`s upcoming monetary policy decision, with uncertainty regarding whether the central bank will continue to raise rates or pause its tightening efforts amidst easing UK inflation.

Additionally, the Bank of Japan is scheduled to provide a monetary policy update on Friday, where traders will closely watch for signs of a potential shift away from Japan`s negative interest rate policy. These central bank actions and the strength of the US dollar are influencing the direction of gold prices.

MCX October bullion futures slumped by Rs 437 at Rs 58968 per 10 grams. A break of Rs 58900 may take it in the range of 58,700-58,300.