Gold Silver Rate Today: Gold and silver prices fall on weak global cues after Fed hikes interest rate

On the Multi Commodity Exchange of India (MCX), the gold contract for February delivery was trading at Rs 54,040.00 per 10 grams, down Rs 634.00 (1.16 per cent) at 2:21 pm while the silver contract for March delivery was at Rs 67,718.00, down Rs 1,584.00 (2.29 per cent).

In the global market, spot gold slipped 0.9 per cent to $1,791.71 per ounce, as of 0724 GMT, retreating further from a more than five-month high scaled on Tuesday. US gold futures were down 0.9 per cent at $1,802.10, according to Reuters data.

Commenting on the bullion market, Navneet Damani, Senior VP – Commodity Research at Motilal Oswal Financial Services said, “Fed as per expectations raised rates by 50 bps bringing the fed fund rate to 475-500 bps, highest level since 2007. The fed continue to show concerns regarding inflation and mentioned that the fight against inflation is not over yet. Fed projects higher core inflation than previous estimate, which means even with a slower pace the US central bank will continue to raise rates till inflation is around their target of 2 per cent. The headline inflation number has been falling since the last two readings; however there are still pain points, hence a continuous fall in inflation is required for any change in stance from the Fed. The ECB is set to raise interest rates for a fourth straight time, albeit probably by a smaller increment, and lay out plans to drain cash from the financial system as it fights runaway inflation. Along with ECB, BOE policy meeting is also scheduled later in the day. Volatility could be a bit higher today as in addition to the central bank policy statements, focus will also be on the US Retails Sales and IIP data. Broader trend on COMEX could be in the range of $1,770-1,810 and on domestic front prices could hover in the range of Rs 54,000-54,800 could be expected.”