After the US Federal Reserve’s recent decision to keep interest rates unchanged, there was a noticeable upswing in gold prices, predominantly influenced by a weakening American dollar. This uptrend was observed not just on global scales but also in domestic markets, where both gold and silver experienced price hikes.
In terms of exact figures on the Multi Commodity Exchange (MCX), gold futures for delivery on December 5 were trading at a 0.19% increase, priced at 60,901 rupees per 10 grams. Silver, on the other hand, witnessed a more significant rise of 0.76%, trading at 71,838 rupees per kilogram.
The global scene was no different. Spot gold prices surged by 0.1% to reach 1,983.77 dollars per ounce. Spot silver remained stable at 22.98 dollars per ounce, while platinum and palladium experienced increments of 0.6% and 1% to settle at 926.08 dollars and 1,114.02 dollars respectively. On the Comex, gold became pricier by 0.27% at 1,992.30 dollars per ounce, whereas silver touched 23.10 dollars, showing a 1.36% increase.
Another notable mention is the world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust. The holdings of this entity expanded by 0.24% on Wednesday, weighing in at a whopping 861.51 tons. With this in the backdrop, market analysts and investors are keenly awaiting the American non-farm payroll report set to release on Friday.
On the currency front, the rupee appreciated against the American dollar. In early trade on Thursday, the rupee strengthened by 9 paise, reaching 83.19 against the dollar, especially after the US Federal Reserve’s announcement to maintain steady interest rates. The domestic currency began its trade at 83.23 on the interbank foreign exchange and soon touched an early high of 83.19, indicating a rise of 9 paise compared to the previous close. It’s worth noting that the rupee had closed at 83.28 against the dollar on Wednesday.
In summary, the Federal Reserve’s decision, coupled with other global market dynamics, has significantly influenced gold, silver, and currency valuations. As always, investors will keep a keen eye on further developments and adjust their strategies accordingly.
