Gold Silver Reports — COMEX Gold futures jumped to a two week high yesterday as continued weakness in the dollar following the Federal Reserves cautionary stance on the pace of interest-rate increases this year boosted the sentiments. A strong support seemed to have emerged around $1200 per ounce levels and the counter currently trades flat around $1226 per ounce. MCX Gold futures ended around Rs 28400 per 10 grams, up 1.50% on the day after hitting highs above Rs 28500 levels.
The US dollar index has dropped sharply after the Fed decision. The index is quoting around its six week low levels near 100 as a sharp break under 101 levels has hurt sentiments. The Federal Reserve on Wednesday raised its benchmark interest rate in response to the improving economy. The Fed has lifted its target rate by a quarter point to a range of 0.75% to 1%. The Fed said “the labor market has continued to strengthen and that economic activity has continued to expand at a moderate pace.”
It was the second interest rate in three months, and the first since President Donald Trumps inauguration in January. In addition to offering a modest rate hike, the Fed said it still projects only two more rate hikes in 2017, three in 2018 and three in 2019. DOW edged up on the Fed mandate after recent string of losses. Overall economic cues are positive and focus would now shift to President Trump yet again.
Meanwhile, a sharp rebound has been noted in local bullion imports. Indias Gold imports jumped 143% to Rs 23343 crores in January 2017. Silver imports also soared by 263% to Rs 993 crores. Meanwhile, Gems and Jewellery exports rose mildly by 0.56% to Rs 26911 crores last month. — Money Market Guru — Pia