Gold trends higher after US Fed's rate decision: Check latest prices in India

Market participants are now awaiting cues from the ECB and BoJ for any impact on precious metals market.

Manisha Gupta

July 27, 2023 / 02:18 PM IST

Gold trends higher after US Fed's rate decision: Check latest prices in India

Gold prices are higher after the highly-anticipated decision by the US Federal Reserve, where benchmark rate was raise by 25 bps.

Some analysts believe that the inflationary pressures will gradually subside in the foreseeable future, thus reassuring the market. This sentiment has also led to a widespread belief among investors that the era of consecutive rate hikes might be put on hold.

As inflation concerns ease, the demand for gold, often considered a hedge against inflation, gets strengthened, thus pushing its prices higher.

Meanwhile, attention is shifting to the European Central Bank (ECB), which is holding its monetary policy meeting on July 27, that is today. Market participants are eagerly awaiting cues from the ECB on their stance towards interest rates, as this could have implications for European and global markets.

Additionally, the Bank of Japan (BoJ) is scheduled to hold its own monetary policy meeting on July 28, further adding to the current climate of uncertainty and anticipation among investors worldwide.