The value of gold right now: Gold charges right now: Gold costs continue to melt as the US dollar stays excessively near 20 years

Gold prices continued to fall on Friday as the US currency held near a 20-year high. In addition, the ultra-tight financial coverage from the US Federal Reserve as a result of aggressive rate increases has affected the bullion charm. Higher interest rates within the economic system tend to weaken the charm of yellow steel that does not produce interest.

The US dollar index was nearing its highest level since 2002 on Thursday and the 10-year US Treasury yield was at an 11-year high buoyed by the Fed's 75 basis point fee hike and its hawkish outlook on Wednesday.

Gold futures for October

traded down 0.21% or Rs 107 at Rs 49,893 per 10 grams. However, silver futures in December noted a drop of 0.19%, or Rs 112, to Rs 57,915 per kilogram. The market has already discounted the fee increase (75 basis points), which is why we are not seeing a significant reduction in costs,” stated Ajay Kedia, Director of Kedia Commodities in Mumbai.

“We are seeing $1650 as aid and $1,720 as resistance…Expectations of additional tariff hikes cap gold gains,” Kedia added.

After the US Federal Reserve’s financial coverage result on Wednesday, some central banks globally , from Indonesia to Norway, raised interest rates on Thursday, sparking issues of global recession.
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Central European Financial Institution Governing Council member Isabel Schnabel said Thursday that inflation in the region Euro ready to expand, defending ECB plans to raise additional fees.

A gauge of investor sentiment, holdings of SPDR Gold Belief, the world's largest gold-backed trading fund, fell to 30,547,653 ounces Thursday , which is the lowest since March 2020.

Within the spot market, the best purity gold was offered at Rs 49,745 per 10 grams , while silver was priced at 57,056 rupees per kilogram on Wednesday, in line with the Indian Bullion and Jewelery Association.

(DISCLAIMER: Suggestions, options, opinions and opinions are their own. These do not represent the opinions of financial institutions)

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