Tag: rate hike

  • S&P Global Ratings Upgrades India’s FY27 GDP Forecast to 7%; RBI Rate Hike Expected

    S&P Global Ratings Upgrades India’s FY27 GDP Forecast to 7%; RBI Rate Hike Expected

    S&P Global Ratings raised India’s GDP growth forecast for fiscal year 2027 (FY27) to 7% on September 23, 2026, up from the previous estimate of 6.6%. The upgrade reflects stronger-than-expected economic activity, driven by robust consumption, industrial output, goods exports, and government investment.

    The ratings agency also expects the Reserve Bank of India (RBI) to implement a 25-basis-point rate hike during FY27, citing persistent inflation pressures and strong growth momentum. India recorded 7.8% growth in the June quarter, supporting the upward revision.

    S&P forecasts consumer inflation to average 5.1% in FY27, which could influence the RBI’s monetary policy. The agency noted that the balance of considerations is shifting toward higher interest rates, with risks from West Asia tensions and weather conditions adding to the outlook.

    Weather remains a concern, as cumulative rainfall stood 15% below normal through early September, potentially pressuring agricultural output and food inflation. Higher energy prices could further strain the rupee and inflation.

    The latest S&P forecast is above the RBI’s own projection of 6.7% and Fitch Ratings’ estimate of 6.4%, but aligns with Moody’s expectation of 7% growth for India in FY27. Looking ahead, S&P expects India’s growth to reach 7.2% in FY28 before easing to 7% in FY29, with domestic consumption and investment remaining central to the trajectory.

  • Gold Drops 1.11% on MCX After Fed Rate Hike; Brent Crude Holds Near $106

    Gold Drops 1.11% on MCX After Fed Rate Hike; Brent Crude Holds Near $106

    Gold prices on the Multi Commodity Exchange (MCX) declined sharply on September 17, following the US Federal Reserve’s decision to raise interest rates by 25 basis points to a range of 3.75%–4%. The move, driven by persistent inflation and elevated energy costs, pushed October gold futures down 1.11% to Rs. 1,50,778 per 10 grams. Silver also weakened, with September futures falling 1.19% to Rs. 2,31,982.

    Meanwhile, global crude oil benchmarks showed mixed movement. Brent crude futures edged up 0.03% to USD 105.9 per barrel, while US West Texas Intermediate (WTI) slipped 0.05% to USD 104.4 per barrel.

    Domestic Gold Prices by Purity and City

    In the Indian market, 24-karat gold dropped by Rs. 60 to Rs. 1,52,840 per 10 grams, and 22-karat gold declined by Rs. 55 to Rs. 1,40,100. Prices varied slightly across major cities:

    • Mumbai: Rs. 1,52,840
    • Kolkata: Rs. 1,52,840
    • Delhi: Rs. 1,52,990
    • Chennai: Rs. 1,52,840

    US Gold and Precious Metals Overview

    In international markets, spot gold rose more than 1% to USD 4,310.49 per ounce as investors weighed the Fed’s hawkish stance and potential for further tightening. US gold futures for December delivery were down roughly 1% at USD 4,348.70. Spot silver gained 1.4% to USD 63.83, platinum firmed 1.6% to USD 1,780.55, and palladium climbed 2% to USD 1,295.

    Key Levels and Analyst Outlook

    Kelvin Wong, senior market analyst at OANDA, noted that oil prices remain a crucial factor for gold. “If oil prices continue to decline, that could support gold prices moving higher, at least from a medium-term perspective. Until that materializes, I expect gold to remain range-bound,” he said. Wong added that the current uptick in gold is largely technical, with the Fed’s hawkish message already priced in.

    On the MCX, gold is under short covering with open interest declining 4.15% to 8,818. Support is placed at Rs. 1,51,630, with a break below opening Rs. 1,50,790, while resistance is seen at Rs. 1,53,130, above which prices could test Rs. 1,53,790.

    Internationally, gold shows a bearish near-term bias below USD 4,315–USD 4,320. This zone acts as a key pivot; above it, the metal could target the 38.2% Fibonacci level near USD 4,404 and the 23.6% retracement at USD 4,513. On the downside, immediate support is at the 61.8% Fibonacci retracement of USD 4,226, followed by the 78.6% level at USD 4,100.

  • Bitcoin Drops as Fed Rate Hike Strengthens Dollar and Raises Rate Risks

    Bitcoin Drops as Fed Rate Hike Strengthens Dollar and Raises Rate Risks

    Bitcoin extended its decline after the Federal Reserve raised interest rates by 25 basis points, lifting the benchmark range to 3.75%–4.00%. BTC has fallen more than 3% over three trading days, weighed down by a stronger dollar and expectations of further tightening.

    Fed Rate Hike Adds Pressure to Bitcoin

    Markets had priced in a more than 90% probability of the increase before the announcement, reflecting expectations for a more aggressive policy stance. Higher US rates tend to boost demand for bonds and support the dollar, while tighter financial conditions can reduce the liquidity available for risk assets such as Bitcoin.

    The dollar had already been strengthening ahead of the decision. The DXY index continued to push toward 100, a level that has attracted notable buying interest in recent sessions. A stronger dollar can also compete with Bitcoin for capital, as investors increasingly favor dollar-denominated assets when US bond yields become more attractive.

    Dollar Strength and Open Interest Shape BTC Trading

    Bitcoin demand has shown signs of cooling as the dollar gains ground and rate expectations remain firm. Short-term selling pressure has persisted as a result. Open interest across exchanges recently climbed to roughly $25.5 billion, indicating greater participation in Bitcoin derivatives. However, rising open interest combined with falling prices can also point to growing bearish positioning, especially while Bitcoin remains sensitive to liquidity and interest-rate expectations.

    2022 Tightening Cycle Offers a Limited Comparison

    History suggests the Federal Reserve rarely stops after a single increase. Since 1994, the central bank has gone “one and done” only once, and single hikes have remained uncommon across the 12 tightening cycles since 1955. Current market pricing points to another 75 basis points of tightening within six months.

    Bitcoin’s track record through tightening cycles is much shorter. The cryptocurrency traded through the 2015 cycle, although thinner liquidity makes that period less comparable to today. The 2022 cycle provides a closer reference because Bitcoin had developed a more mature market structure. BTC peaked near $69,000 in November 2021 before falling about 40% ahead of the March 2022 hike.

    Today, Bitcoin is also trading around 40% below its October high of $126,000. That decline places BTC near a drawdown level similar to the one seen before the 2022 tightening cycle began.

  • Bitcoin Steady Near $77,000 as Fed Rate Hike Probability Climbs to 85%

    Bitcoin Steady Near $77,000 as Fed Rate Hike Probability Climbs to 85%

    Bitcoin held near USD 77,000 on Monday as cryptocurrency markets braced for a crucial Federal Reserve meeting this week. Rate markets now place an 85% chance on a 25-basis-point rate increase. The leading cryptocurrency traded between roughly USD 77,000 and USD 77,200 during Monday morning and remains about 6% below its three-month high above USD 82,000 set earlier this month.

    Meanwhile, Ethereum traded near USD 2,540, while Solana held above USD 101. According to CoinDesk’s market snapshot, Ethereum gained about 2.9% and Solana rose 1.4%, while Bitcoin slipped slightly.

    Fed Rate Decision Takes Center Stage

    Traders are now focused on the Federal Reserve’s September 15-16 meeting after stronger inflation data shifted expectations. August consumer prices increased 0.4% from July and 3.4% from a year earlier. As a result, interest-rate markets moved toward expecting another rate increase, with the probability of a 25-basis-point hike climbing to roughly 85% before the meeting.

    Higher rates can affect cryptocurrency markets because Treasury securities become more attractive to yield-seeking investors. At the same time, borrowing costs rise for leveraged and speculative positions. Goldman Sachs reportedly abandoned its previous forecast for unchanged rates, shifting instead toward expecting a 25-basis-point increase as persistent inflation strengthened the case for tighter policy.

    Altcoins Rise as Technology Stocks Retreat

    Crypto markets showed relative strength even as technology shares weakened. Bitcoin gained about 1% over 24 hours to roughly USD 77,800, while Ether rose about 1% to USD 2,500. In contrast, the Invesco QQQ ETF fell 1.5% in U.S. pre-market trading. South Korea’s KOSPI dropped 3%, and memory-chip producer SK Hynix declined 6%.

    Those moves followed renewed concerns about artificial intelligence development. Anthropic CEO Dario Amodei called for slower development so safety measures could catch up. OpenAI CEO Sam Altman and Elon Musk also voiced agreement. Separately, Anthropic reportedly selected Nasdaq for its expected IPO, while Altman said OpenAI would not go public in 2026.

    Bitcoin had already faced pressure from hotter inflation, rising Treasury yields and higher oil prices. Those forces repeatedly blocked attempts to reclaim the USD 80,000 level.

    Bitcoin Faces USD 81,700 Breakout Test

    Bitcoin briefly approached USD 80,000 after Friday’s consumer inflation figures before giving back much of the advance. Traders now face a narrow range before the Federal Reserve decision. CryptoQuant identified approximately USD 81,700 as the next major level Bitcoin must clear before a new bullish phase gains stronger confirmation.

    The analytics firm described Bitcoin’s underlying trend as constructive after a roughly 24% rebound across two weeks. Still, several resistance levels remain above the current price. Additional resistance sits near USD 83,600 and USD 88,700. On the downside, CryptoQuant identified USD 70,000 as a potential support level. A stronger accumulation area sits between USD 62,000 and USD 65,000. Long-term holders have accumulated about 476,000 Bitcoin around that broader zone this year.

    Can Bitcoin clear USD 81,700 while markets adjust to another Federal Reserve rate increase? For now, Bitcoin remains between resistance near USD 80,000 to USD 82,000 and major support below the current market price.

    Final Thoughts

    Bitcoin remains near USD 77,000 as traders prepare for a Federal Reserve decision that markets increasingly expect will deliver a 25-basis-point rate increase. Ethereum and Solana have outperformed Bitcoin, while USD 81,700 remains the key upside level and USD 70,000 marks important downside support.

  • FTSE 100 Dips as Oil Prices Surge and Fed Rate Hike Expectations Strengthen

    FTSE 100 Dips as Oil Prices Surge and Fed Rate Hike Expectations Strengthen

    Global stock markets traded mixed on Monday as rising oil prices and growing expectations of a Federal Reserve rate hike shaped investor sentiment. European shares remained subdued, while several Asian markets advanced sharply after strong gains in technology stocks.

    Oil prices stayed near six-week highs as the conflict between the United States and Iran disrupted shipping and crude flows. Meanwhile, strong US employment data raised expectations that the Fed could increase interest rates at its September meeting.

    European Stocks Struggle as Oil Prices Rise

    The pan-European Stoxx 600 slipped almost 0.1% during morning trading. Germany’s DAX fell 0.14%, while France’s CAC 40 and Italy’s FTSE MIB each gained about 0.1%.

    London’s FTSE 100 fell 0.1% to 10,824.74 points by 0927 GMT, while the FTSE 250 also declined 0.1%. Consumer-focused sectors led losses. Beverage stocks dropped 1.6%, while personal care, drug and grocery shares declined 0.8%.

    Energy shares provided support as higher crude prices lifted oil companies. BP and Shell gained around 1% each. Standard Life rose 1.5% after reporting first-half profit above market expectations, while Ashmore fell 1.4% after annual profit missed forecasts.

    Spire Healthcare gained around 3% after agreeing to a takeover by funds managed by Toscafund, Three Hills and Ares. The deal values its share capital at about EUR 1.03 billion.

    Fed Rate-Hike Bets Rise After Strong US Jobs Report

    Investors increased bets on a September Federal Reserve rate hike after US nonfarm payrolls rose by 162,000 in August. Economists had expected an increase of about 56,000 jobs. The unemployment rate remained at 4.1%.

    Traders now see about a 58% chance of a Fed rate increase at the September 15-16 meeting. Expectations stood near 44% a month earlier. Investors will therefore watch US producer and consumer inflation data later this week for further direction.

    Gold slipped as higher rate expectations reduced demand for non-yielding assets. Spot gold fell 0.2% to about USD 4,421 per ounce.

    Ole Hansen of Saxo Bank said gold had found buying interest below USD 4,400, while resistance remained above USD 4,500. He added that stronger employment data had ‘reinforced expectations of a Fed rate hike on 16 September.’

    Middle East Conflict Keeps Energy Markets in Focus

    Oil prices remained elevated after further US-Iran hostilities affected vessels around the Strait of Hormuz. Iran also said it plans to announce a new restricted zone in the Gulf and provide details of a shipping corridor.

    US Energy Secretary Chris Wright also raised doubts over the chances of a near-term nuclear agreement with Iran. “There may not be a nuclear agreement,” Wright said, adding that an agreement ‘may await the next administration in Iran.’

    Higher energy costs have added pressure to inflation expectations across major economies. Markets are now tracking whether rising fuel prices could affect future central bank decisions.

    Asian Markets Rise While Wall Street Remains Closed

    Asian markets mostly advanced on Monday. South Korea’s Kospi jumped 4.61%, while Japan’s Nikkei 225 gained 2.12%. Samsung rose 5.68%, SK Hynix climbed 8.26%, and SoftBank advanced 11.22%.

    Mainland China’s CSI 300 gained 0.59%, while Australia’s S&P/ASX 200 edged 0.06% higher. Hong Kong’s Hang Seng moved in the opposite direction and fell around 0.9%.

    US stock exchanges remained closed Monday for Labor Day. Regular trading will resume on Tuesday, September 8. Investors will return to markets with oil prices, Treasury yields, inflation data, and the September Fed decision in focus.

    Disclaimer: This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research before making any investments.

  • Gold Prices Slip 0.48% on MCX to ₹1,41,800 as US Dollar Strengthens; Key Support and Resistance Levels in Focus

    Gold Prices Slip 0.48% on MCX to ₹1,41,800 as US Dollar Strengthens; Key Support and Resistance Levels in Focus

    Gold traded lower on the Multi Commodity Exchange (MCX) on Tuesday, July 28, as a stronger US dollar and anticipation of the Federal Reserve’s monetary policy decision weighed on the precious metal. August gold futures declined by 0.48%, settling at ₹1,41,800 per 10 grams.

    September silver futures also took a hit, falling 1.73% to ₹2,17,343. In the energy sector, Brent crude futures dropped 1.20% to $87.30 per barrel, while US West Texas Intermediate (WTI) edged down 1.16% to $81.65 per barrel.

    The decline comes as the US dollar index hovered near 101.5 ahead of the Fed’s rate decision scheduled for July 29. According to the CME FedWatch Tool, traders now price in an 81% chance of a rate hike in September, adding pressure on gold prices.

    Domestic Gold Prices

    In India, 24K gold fell by ₹169 to ₹1,44,170 per 10 grams, while 22K gold declined by ₹155 to ₹1,32,150. Prices varied slightly across major cities:

    • Mumbai: ₹1,44,170
    • Kolkata: ₹1,44,170
    • Delhi: ₹1,44,320
    • Chennai: ₹1,44,160

    US Gold Prices

    Across the Atlantic, spot gold fell 0.7% to $4,044.81 per ounce, after rising about 1% on Monday. US gold futures for August delivery lost 0.8% to $4,045.40. Other precious metals mirrored the decline: spot silver dropped 1.9% to $57.30, platinum lost 1% to $1,605.14, and palladium slid 1.6% to $1,271.09.

    Key Levels to Watch

    Market analysts remain cautious ahead of the Fed’s decision. Ilya Spivak, Head of Global Macro at Tastylive, commented: “We’re oscillating in this narrow range between $3,950 and $4,200, and I think the market is just waiting for Fed signals.” Spivak added that if the Fed meeting does not set the groundwork for a September rate hike, gold is likely to rally above $4,200 per ounce.

    Key support and resistance levels for traders:

    • International Gold: Support at $4,034 and $4,000; resistance at $4,110 and $4,140 per troy ounce.
    • International Silver: Support at $57.20 and $56.60; resistance at $59.40 and $60 per troy ounce.
    • MCX Gold: Support at ₹1,42,200 and ₹1,41,400; resistance at ₹1,44,000 and ₹1,45,150.
    • MCX Silver: Support at ₹2,19,100 and ₹2,17,000; resistance at ₹2,24,000 and ₹2,26,600.

    As always, investors are advised to monitor global cues, the dollar index, and Fed statements for further direction in gold and silver prices.

  • Gold Prices Dip as Brent Crude Trades Above $100, Fueling Rate Hike Expectations

    Gold Prices Dip as Brent Crude Trades Above $100, Fueling Rate Hike Expectations

    Gold prices edged lower on the Multi Commodity Exchange (MCX) on July 24 as Brent crude oil held above $100 a barrel, intensifying inflation concerns and reinforcing expectations for a September rate hike by the U.S. Federal Reserve.

    Domestic Gold Prices

    MCX August gold futures dropped 0.7% to Rs 1,41,824 per 10 grams. September silver futures also declined, falling 0.88% to Rs 2,17,447. In the physical market, 24K gold fell by Rs 185 to Rs 1,44,330 per 10 grams, while 22K gold declined by Rs 170 to Rs 1,32,300. Prices in Mumbai and Kolkata stood at Rs 1,44,330, Delhi at Rs 1,44,480, and Chennai at Rs 1,44,330.

    US Gold and Precious Metals

    Spot gold slipped 0.4% to $4,030.09 per ounce, extending losses after a 2% drop in the previous session. U.S. gold futures for August delivery were also 0.4% lower at $4,033.20. Spot silver fell 0.7% to $57.29 per ounce but was on track for a weekly gain of 2.5%. Platinum dropped 1.3% to $1,579.49, and palladium declined 1.5% to $1,237.50, both heading for a weekly loss.

    Key Levels to Watch

    According to the CME FedWatch Tool, traders now see an 81% probability of a quarter-point rate hike in September. Elevated crude oil prices above $100 are adding to inflation pressures, strengthening the case for tighter monetary policy.

    GoldSilver Central Managing Director Brian Lan noted, “In the short term, we expect more volatility… gold has been trading between $3,980 and about $4,170 and has been stuck in this range for weeks. Every time prices hit close to $4,000 or slightly below, we see big buyers coming to buy it back up.”

    Technically, XAU/USD trades around $4,030 and remains capped below the 21-day simple moving average (SMA) at $4,068.50 and the 50-day SMA at $4,231.04. The Relative Strength Index (RSI) sits near 44, indicating neutral-to-soft momentum. Immediate resistance is at $4,068.50, followed by the 50-day SMA near $4,231.04. A break above that would face further resistance at the 100-day SMA ($4,479.88) and the 200-day SMA ($4,494.74), which form a dense zone that needs to be reclaimed to ease the broader bearish tone.

  • Gold Prices Dip on MCX to ₹1,43,350 as Middle East Tensions Stoke Inflation Fears

    Gold Prices Dip on MCX to ₹1,43,350 as Middle East Tensions Stoke Inflation Fears

    Gold futures on the Multi Commodity Exchange (MCX) declined on June 24, 2026, amid renewed hostilities between the US and Iran that sent oil prices higher and reignited inflation concerns. The escalation is prompting traders to bet on tighter monetary policy from the US Federal Reserve.

    August gold futures on MCX fell 0.56% to ₹1,43,350 per 10 grams. July silver futures also slipped 0.7% to ₹2,19,863. In the international market, Brent crude futures edged down 0.67% to $72.47 a barrel, while US West Texas Intermediate (WTI) crude dropped 1.80% to $70.05 a barrel.

    According to the CME FedWatch Tool, traders now anticipate three rate hikes from the US Federal Reserve this year, with an 80% probability of a December hike.

    Domestic Gold Prices

    In the domestic spot market, 24K gold fell by ₹93 to ₹1,43,020 per 10 grams, and 22K gold dropped by ₹85 to ₹1,31,100. Regional variations were minimal: Mumbai and Kolkata both quoted ₹1,43,020, Delhi ₹1,43,170, and Chennai ₹1,45,090.

    US Gold Prices

    US gold prices also eased on Monday as recent US-Iran strikes in the Gulf pushed oil prices higher. Spot gold was down 0.6% at $4,062.89 per ounce, while US gold futures for August delivery lost 0.5% to $4,077.50. The metal is heading for a fourth consecutive monthly loss of 10.4%.

    Spot silver fell 1.2% to $58.47 per ounce. Platinum gained 0.2% to $1,617.15, and palladium rose 0.4% to $1,213.60.

    Key Levels to Watch

    Tim Waterer, chief market analyst at KCM Trade, commented: “US and Iran were at it again over the weekend, with fresh military strikes reported from both parties, which casts further doubt over how long oil can stay at these subdued levels and therefore over the broader inflation and interest rate outlook.”

    Waterer added: “Gold could see the $5,000 level again this year, but this would be based on further de-escalation, oil having a sustained move to pre-war levels to dull the inflationary impact of the conflict, and a softer dollar.”

    Internationally, gold has support at $4,055 and $4,010, while resistance is at $4,135 and $4,180 per troy ounce. Silver has support at $57.40 and $55.80, with resistance at $61.20 and $62.80 per troy ounce.

    On MCX, gold has support at ₹1,43,300 and ₹1,42,400 and resistance at ₹1,45,150 and ₹1,46,200. Silver has support at ₹2,20,000 and ₹2,16,600 and resistance at ₹2,26,000 and ₹2,29,100.

    Stay updated with the latest gold price movements and market insights.

  • MCX Gold Slides to ₹1,40,748 as US Dollar Index Remains Firm Above 101; Fed Rate Hike Outlook Weighs

    MCX Gold Slides to ₹1,40,748 as US Dollar Index Remains Firm Above 101; Fed Rate Hike Outlook Weighs

    Gold prices traded lower on the Multi Commodity Exchange (MCX) on June 24, as the US dollar index held above the 101 mark amid growing expectations of additional monetary tightening by the Federal Reserve. August gold futures declined 0.37%, settling at ₹1,40,748 per 10 grams. Meanwhile, July silver futures slipped 1.07% to ₹2,10,801.

    In the international market, Brent crude futures fell 1.68% to $72.50 a barrel, while US West Texas Intermediate (WTI) crude dropped 1.46% to $69.31 a barrel. The CME FedWatch Tool indicates that traders now anticipate three rate hikes from the US Federal Reserve this year, with a 67% probability of a September increase.

    Domestic Gold Prices

    In the domestic spot market, 24K gold fell by ₹278 to ₹1,40,130 per 10 grams, and 22K gold decreased by ₹255 to ₹1,28,450. City-wise rates were largely uniform: Mumbai and Kolkata quoted ₹1,40,130, Delhi ₹1,40,280, and Chennai ₹1,45,630.

    US Gold Prices

    US gold prices extended their losses on Thursday, trading near a more than seven-month low touched in the previous session. Spot gold dropped 0.4% to $3,985.89 per ounce, while US gold futures for August delivery eased 0.2% to $4,001.60 per ounce.

    Spot silver fell 0.2% to $57.33 per ounce, platinum lost 0.2% to $1,575.85, and palladium gained 0.3% to $1,170.25.

    Key Levels to Watch

    According to independent metals trader Tai Wong, “The market is pricing a rate hike as soon as September due to a hawkish Fed. A surging dollar and lower inflation expectations are weighing on precious metals.” Wong added that while a collapse is unlikely, gold may remain in a prolonged consolidation phase due to weak demand.

    On MCX, gold has support at ₹1,40,000 and ₹1,38,800, and resistance at ₹1,42,400 and ₹1,43,350. Silver has support at ₹2,09,100 and ₹2,05,000, with resistance at ₹2,16,600 and ₹2,21,000.

  • Gold Dips Below $4,000 as Commodity Markets Close for Muharram Morning Session; Silver Nears $56

    Gold Dips Below $4,000 as Commodity Markets Close for Muharram Morning Session; Silver Nears $56

    The commodities market remained closed for the morning session on Friday due to Muharram, operating from 9:00 am to 5:00 pm. Evening trading resumed as usual from 5:00 pm to 11:30 pm/11:55 pm. Gold and silver prices continued to face downward pressure, extending a fourth consecutive weekly decline amid a stronger US dollar and expectations of higher US interest rates.

    According to the CME FedWatch Tool, traders now anticipate three rate hikes from the US Federal Reserve this year, with a 64% probability of a September increase. The robust dollar and hawkish Fed outlook weighed heavily on bullion, pushing spot gold below the $4,000 mark for the first time since November 2025. Spot gold fell 0.9% to $3,991.49 per ounce, while US gold futures for August delivery lost 1% to $4,007.30.

    Other precious metals also declined: spot silver dropped 3.2% to $56.01 per ounce, platinum lost 2.4% to $1,563.20, and palladium slid 1.6% to $1,165.93. Gold has fallen roughly 29% from its record high of $5,594.82 on January 29.

    Domestic Gold Prices in India

    In the domestic market, 24K gold rose by Rs. 27 to Rs. 1,41,600 per 10 grams, while 22K gold gained Rs. 25 to Rs. 1,29,800. City-wise prices were: Mumbai and Kolkata at Rs. 1,41,600, Delhi at Rs. 1,41,750, and Chennai at Rs. 1,43,340.

    Key Levels to Watch

    “The rapid repricing of the hawkish Fed created a strong bullish momentum in the US dollar, which eventually led to this significant downward drift in gold prices,” said Kelvin Wong, senior market analyst at OANDA. Renisha Chainani, Head of Research at Augmont, noted that the unwinding of yen carry trades, as USDJPY slides to a 40-year low on rising Japanese interest rates, is creating ripple-effect selling across safe-haven assets.

    Chainani explained that gold has broken below its key $4,000 support and dropped toward $3,950. A sustained breakdown could open the path toward $3,600, although oversold conditions leave room for a bottom-fishing or short-covering rally toward $4,100 and $4,165. She added that silver has also broken below the $60 level and slipped to $55.50, with the next support at $50 if bearish momentum continues.

    Meanwhile, Brent crude futures declined 1.77% to $73.93 a barrel, and US West Texas Intermediate (WTI) fell 1.86% to $70.58 per barrel.