MCX Gold Weekly Outlook : Gold Spot Break Above $1400, Central Banks In Focus

Gold Silver Reports (GSR) – Spot Gold jumped in style, breaking above $1400 per ounce and hitting nearly 18 month highs as global equities edged up amid cautious trade.

Gold surged as the US Federal Reserve stated that it will act as appropriate to sustain the US economic expansion amid increasing uncertainties about the outlook for the economy. The Fed left its interest rates unchanged and noted that it continues to see a sustained economic expansion, a strong labor market, and inflation near its 2% target.

Read More : Gold Running at Positive Road Map, If sustained Move Beyond $1400 Level

Rising commodity prices are also benefiting Gold though there are some worries about the Indian retail demand following the massive spurt in prices recently. Local spot prices are hovering around Rs 34000 per 10 grams – their highest mark in nearly five years.

MCX Gold futures closed around Rs 34170 per 10 grams after hitting highs of Rs 34470 per 10 grams.

Meanwhile the other major global central banks are also indicating a tepid monetary policy stance. European Central Bank President Mario Draghi said that the central bank still has room to cut interest rates and measures to cushion the side effect from low interest rates.

The Bank of England left its main rate of interest unchanged at 0.75% but noted that the underlying growth in the UK appears to have weakened slightly in the first half of the year relative to 2018 to a rate a little below its potential.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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