The US Fed minutes released on 21st February 2024 revealed that Federal Reserve officials are not in a hurry to cut interest rates and showed both caution and optimism on inflation. Their policymakers decided not to make any change in their key overnight borrowing rate.
It was stated during the minutes that, “Most participants noted the risks of moving too quickly to ease the stance of policy and emphasized the importance of carefully assessing incoming data in judging whether inflation is moving down sustainably to 2 percent.” A general sense of optimism was achieved as Fed’s policy moves helped in lowering inflation rates.
Gold Rate Last Week after US Fed Minutes Release
The price of Spot Gold increased by around 2.3% and reached a 2-months’ high of $2088/oz last week. Two primary reasons behind the hike were falling US bond yields and weakening of the US dollar index. Though Fed officials delivered a marginally hawkish tone, it was reviewed by investors who trimmed bets on Fed interest rate cuts and expected 95 basis points of easing toward the year’s end.
It might be beneficial for gold investors to stay aware of the US dollar rates as a gold price movement is on the cards in the near term. Last week, MCX Gold rose by around 2% and touched a two months’ high of ₹63611 per 10 gm last week after overseas gold markets became firm.
A Closer Look at Gold Prices this Week
Spot Gold reached a record high of $2151/oz on Wednesday (6th March 2024). Few reasons behind the hike were drop in US bond yields, a weaker US dollar and mixed job data. The inflation was also supported by the hike in crude oil prices. The down range for Spot gold was 2130 and the up range was 2170. MCX Gold touched a price of around ₹65178 per 10 gm on 6th March.
(Gold Report of 6th March 2024)
Demand for Digital Gold after US Fed Minutes Release
Gold prices witnessed some relief rally after the release of the US Fed minutes. The demand for digital gold also enhanced. If you are planning to buy and redeem 24K digital gold, myDigiGold is the name you can trust. You can redeem the purchased gold online at your convenience by visiting sencogoldanddiamonds.com or any of our 150+ Senco stores.
Disclaimer: The data provided on this blog is for general informational purposes only. The data is based on our research and understanding, and we cannot guarantee its accuracy or reliability.