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yesterday settled up by 0.1% at 59355 as traders digest the latest monetary policy decisions. The Federal Reserve paused it’s tightening campaign but hinted at further interest rate hikes this year. At the same time, the ECB delivered another 25bps increase in borrowing costs and reiterated it is not planning to pause the rate-hike campaign. Also, the BoE is expected to increase rates further next week.
On the other hand, the BoJ is set to maintain its ultra-loose monetary policy tomorrow and the People’s Bank of China cut two key interest rates by 10bps, the first reduction since August 2022. The ECB delivered another 25bps interest rate increase, in line with market expectations, and signalled more hikes to come, as inflation is projected to remain too high for too long. The interest rate on the main refinancing operations is now at 4% while the deposit facility increased to a 22-year high of 3.5%. The capacity utilization rate in the United States decreased to 79.6% in May of 2023 from an upwardly revised 79.8% in April and below forecasts of 79.7%. It is also 0.1 percentage point below its long-run average. The operating rate for mining edged down 0.3 percentage points to 92.2.
Technically market is under fresh buying as the market has witnessed a gain in open interest by 0.43% to settle at 13610 while prices are up 57 rupees, now Gold is getting support at 58883 and below same could see a test of 58410 levels, and resistance is now likely to be seen at 59607, a move above could see prices testing 59858.
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