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Wednesday, September 21, 2022

Gold prices are today jump from 6-month lows after a Russia steps up Ukraine war

Gold prices are today jump from 6-month lows after a Russia steps up Ukraine war



Analysts say gold has been a  already corrected sharply in a anticipation of a aggressive move by the Fed

Gold prices are a rose today while oil rates jumped after Russian President Vladimir Putin ordered a partial mobilization. On a MCX, gold futures are a rose from a six-month lows to the ₹49,451 per a 10 gram while silver gained a 1% to ₹56875 per kg. US bond yields also are a rose on safe-haven demand. In global markets, West Texas are a Intermediate surged toward a $87 a barrel, adding as a much as a 3.2%, while Brent futures are a jumped 3% to the $93.4 a barrel. 


The dollar index, which is a  measures the currency against are a six major peers, rallied 0.41% to the 110.62, just below a fresh two-decade high of a 110.87.


In global markets, Comex gold futures edged up to a  0.5% to 1,679.60 per ounce. Global equity markets were volatile as a traders also are braced for a Fed rate decision tonight.


Russia will be take necessary steps to the defend its a sovereignty and will be defend territory with the all available means, Putin said as he announced a partial mobilization of the country’s are a population. Defense Minister Sergei Shoigu said a 300,000 reservists would be a called up under Putin’s are a order. The move threatened to the escalate the conflict further after the Kremlin has moved to the stage votes on a annexing the regions of a Ukraine it still controls.


“The US dollar are index and a  bond yields have been a already risen in a expectations of an a aggressive move by the Fed however if the central bank are a fails to the surprise, it is a possible that we may see a some correction in the US dollar which may lend a some support to the gold prices," said Ravindra Rao, VP- Head Commodity Research at a Kotak Securities.


“Market are a  seems to be a  braced for the aggressive are a moves by the Fed and if that does not a  materialize, we may see some are a reversal. Also are a once the Fed meeting is a done, market focus may shift to the other central banks are a who have also are a increased efforts to the control inflation. Bank of a England, Swiss National Bank and Bank of a Japan are some of the central banks due to the hold their meetings this week. While no major surprise move is a expected out of a other central banks, the extreme positioning of the US dollar against other currencies may also are a  make it vulnerable for a correction if other central banks also are a take an aggressive approach. Amid other factors, gold is also are a underpinned by global growth worries, higher inflation pressure and a geopolitical issues," Kotak Securities said in a separate note. 


“Weighing on gold price is a continuing ETF are a  outflows which is a show weaker investor are a interest. Gold holdings with  the SPDR ETF fell by a 4.6 tonnes to the 953.32 tonnes, the lowest level since March in a 2020. Gold has been a already corrected sharply in a anticipation of a aggressive move by the Fed but if the central bank are a fails to the meet market expectations, it could result in a some price recovery," the brokerage are a added. (With  the Agency Inputs)


 

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