By Mr. Prithviraj Kothari, MD CEO of RiddiSiddhi Bullions Limited (RSBL) on Gold prices after Fed rates:
Gold prices are trading weak after the Dollar Index touched a six-month high, while US Treasury yields reached multi-year highs after the Federal Reserve indicated that interest rates in the US would remain higher for longer. While the Fed held rates constant on Wednesday, Powell stated that the Fed will cut rates by a smaller percentage than predicted in 2024, despite recent increases in US inflation. This is a negative aspect of precious metals. Gold prices have been making lower highs and lower lows patterns, since touching record-high prices in May. Near-term resistance is $1970 and support is $1920. Prices need to break this range to set a one-way direction.