Gold prices surged to a new peak, hitting Rs.66,778 per 10 grams following the decision by the US Federal Reserve to maintain interest rates at a 23-year high for the fifth consecutive meeting. The Fed also signaled its intention to make three cuts this year. This decision prompted a rally in gold prices, with futures contracts on the Multi Commodity Exchange (MCX) for April 2024 opening at Rs.66,100 per 10 grams and reaching an intraday high of Rs.66,778 per 10 grams shortly after the market opened.
US Fed Chair Jerome Powell emphasized the need for more evidence that prices are decreasing but indicated confidence in achieving this and hinted at potential rate cuts in the future.
Chris Weston, head of research for Pepperstone Group Ltd, commented, "The Fed's stance has given gold traders the green light to enter the market again. They have shown tolerance towards current inflation levels and are not deterred by the strength of the labor market."
Spot gold prices also saw an increase, rising by 0.7% to $2,201.94 per ounce as of 9:40 a.m. in Singapore. Concurrently, the Bloomberg Dollar Spot Index experienced a 0.2% decline, while silver, platinum, and palladium prices all rose.