The current gold rate and the 6 July gold price in India: As traders examine US FOMC minutes and wait for economic data to give them clues about the US Fed’s decision on a rate hike, gold prices remain unchanged.
Current gold prices, future gold prices, and gold price projections: On Thursday, the gold rate is trading lower while the silver rate is up 0.20%. Gold August futures were trading at Rs 58,425 per 10 grams on the Multi Commodity Exchange, down Rs 48 or 0.08%. On the MCX, silver July futures were trading 146 rupees higher at Rs 71,211 per kilogram.
After the minutes of the Federal Reserve’s June meeting reiterated predictions that interest rates could remain higher for longer, the yellow metal remained flat globally on Thursday as investors awaited a slew of U.S. economic data that could affect the Federal Reserve’s policy trajectory. U.S. gold futures decreased 0.1% to $1,925.00 while spot gold remained stable at $1,918.59 per ounce.
“COMEX Gold rate pared early gains and closed marginally lower at $1927.1 per troy ounce on Wednesday, tracking a recovery in the dollar after the release of FOMC meeting minutes,” according to a report on the commodity. According to the minutes of the June Fed policy meeting, almost all attendees thought it was reasonable to maintain the fed funds rate in June so they could evaluate the economy’s progress towards maximum employment and price stability. Yet several members supported increasing rates by 25 basis points. All officials continued to believe that maintaining a restrictive approach would be prudent given that inflation was still far higher than the 2% target and the labour market was remained extremely tight. Almost all officials saw the need to increase borrowing prices again this year.
As markets processed the slightly hawkish minutes, the dollar index rose near 103.3 levels and the rate on the 10-year Treasury note remained stable. Nevertheless, investors are departing from the FOMC’s Summary of Economic Projections by pricing in a further 25 bps hike for July and a halt after that due to worries about an economic downturn. The US ISM Services PMI and labour market statistics are the day’s main topics of discussion. Better than anticipated statistics might make a September hike more likely and hurt gold prices, according to Ravindra V. Rao, VP-Head Commodity Research at Kotak Securities.
Flat gold price
The price of gold was unchanged in the early morning trade as investors reviewed the minutes from the Federal Reserve’s most recent meeting and kept an eye out for a slew of economic indicators that could affect the direction of policy at the U.S. central bank. In order to buy time and determine whether additional rate hikes would be necessary, the Fed unanimously decided to hold interest rates stable during the June meeting, according to the FOMC minutes. John Williams, a federal official, said it was the proper course of action for the central bank to maintain constant interest rates while implying that at some point, rates may need to be increased once more.
Ahead of Treasury Secretary Janet Yellen’s visit to Beijing, traders closely monitored any updates about China’s export restrictions on semiconductor metals as the country intensifies its tech conflict with the United States. According to Manav Modi, Research Analyst Commodities and Currencies at MOFSL, investors’ attention is now shifting to the U.S. Labour Department’s, JOLTS, ADP, jobless claims on Thursday before Friday’s non-farm payrolls data.