Precious Metals Preview: COMEX Gold Gains On Bargain Buying, Fed Hikes Rates By 50 BPS

5 May 2022 , 08:56 AM

Gold cut losses as bargain buying supported the yellow metal yesterday. The Federal Reserve on Wednesday announced its widely expected decision to raise interest rates by half a percentage point. The Fed announced that it has decided to raise the target range for the federal funds rate by 50 basis points to 0.75 to 1.0 percent and said it anticipates that ongoing increases in the target range will be appropriate. In addition, the Fed decided to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities on June 1. While this was largely expected by the market, Gold moved up further from a three month low and edged up above $1900 per ounce mark following the Fed decision. MCX Gold futures closed at Rs 50562 per 10 grams, down 0.48% on the day.

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