According to Angel Commodities, on Tuesday , spot gold prices plunged 1 percent to close at $1318 .1 per ounce as dollar gained momentum after New Federal Reserve chief Jerome Powell said in prepared remarks to the U .S. Congress that rate hikes should continue despite the added stimulus of tax cuts and government spending.
Angel Commodities' report on Gold
On Tuesday , spot gold prices plunged 1 percent to close at $1318 .1 per ounce as dollar gained momentum after New Federal Reserve chief Jerome Powell said in prepared remarks to the U .S. Congress that rate hikes should continue despite the added stimulus of tax cuts and government spending. Earlier this week, gold was supported by a softer U.S. dollar helped the metal rebound from its biggest weekly loss this year, but moves were muted before the debut congressional testimony by U.S. Federal Reserve Chair Jerome Powell later this week. The heads of the European Central Bank and Bank of England are also set to give speeches this week. On the MCX, gold prices fell 0.7 percent to close at Rs. 30438 per 10 gms.
OutlookWe expect gold prices to trade lower today as hawkish comments by the incoming Fed head will be supportive for dollar. On the MCX, gold prices are expected to trade lower today; international markets are trading marginally lower at $ 1317.2 per ounce.
