Precious Metals Preview: COMEX Gold Tests Under $1900 Mark Before Bouncing

17 Mar 2022 , 09:05 AM

Gold edged up in Asia today after witnessing deep losses in last few days. investor concerns about a sharp slowdown for China, which is battling a spreading COVID-19 outbreak with ultra-restrictive measures kept the downside limited for the metal after it tested a two and half week low of $1895 per ounce in last session. Gold has surged as the US Federal Reserve announced its widely expected decision to raise interest rates for the first time since December of 2018. The Fed said it has decided to raise the target range for the federal funds rate by 25 basis points to 0.25 to 0.5%. Fed officials lowered their projections for GDP growth in 2022 to 2.8% from 4% and raised their projections for consumer price growth to 4.3% from 2.6%. The decision to raise the rates by a somewhat smaller quantum than the 50 basis points expected before the Russian invasion of Ukraine boosted the metal. The commodity currently trades up half a percent at $1938 per ounce. MCX Gold closed at Rs 51140 per 10 grams, down 0.82% on the day.

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