Gold Prices To Climb To New Highs After Fed Minutes Point To Anchoring Rates To Near Zero

In the global markets, price of gold will move higher today after remaining steady in the previous session. The gains will come after the US Fed Reserve meet minutes released a day before suggest that the US economy will keep interest rates near zero until the country weathers coronavirus crisis. At the emergency meet last month, the Fed allowed for a steep 0.75% cut, taking short term rates to a level prevailing during the global financial crisis of 2008.

The minutes highlighted central bank's worries over impact due to coronavirus. " All participants viewed the near term US economic outlook as having deteriorated sharply in recent weeks and as having become profoundly uncertain', the minutes said.
Also, the minutes stressed on taking the 'whatever it takes' approach i.e. all its rate power for now for combating the crisis.

In the bullion market in the financial capital of the country, gold price on Wednesday hit a new record high of Rs 44,890 per 10 gram due to weakness in rupee dollar rate.

On the MCX however, gold after shedding some ground due to strong dollar and optimism around the levelling off the pandemic, gained to end only lower with loss of 0.31% or Rs. 140 at Rs. 44941 per 10gm.

The rate of a 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 33,668, Rs 41,119 and Rs 44,890 plus 3 percent GST, respectively.

Also, as per the World Gold Council global gold ETFs posted record quarterly asset growth in Q1. All of the spot markets in India remain shut due to coronavirus led lockdowns.

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