The US Federal Reserve in efforts to tame inflation has gone ahead with a 15-year-high jump and increased the interest rates with 0.75 percentage points. With a 75-basis point increase, the prices of precious metal slumped down in India.
It is being said that the borrowing costs are going to see an upward trajectory.
On the MCX (Multi Commodity Exchange), gold futures saw a dip of 0.25 per cent, lowest in seven months, bringing down the prices to Rs 49,321 per 10 grams. Silver, on the other hand, dipped 0.4 per cent to Rs 57,059 per kilograms. The prices of yellow metal went down by one per cent in the international markets. Spot gold came down to $1656.97 per ounce as of 0114GMT.
Jerome Powell, chairman of the US Federal Reserve, said the revision in rates was crucial to “slow demand”, reported BBC.
“We have got to get inflation behind us,” he said. “I wish there were a painless way to do that. There isn’t,” he added.
He also said, “What has become clear is that if given the choice between allowing inflation to remain high for a sustained period …. or pushing the economy into a recession, [central bank leaders] would rather push the economy into recession and get inflation back towards target.”
Before the US Federal Reserve policy meeting, a marginal change in the prices of precious metals including gold was recorded. In India, the price of the yellow metal went up to Rs 50,300 per 10 grams for the 24-carat gold, while the 22-carat gold was retailing at Rs 46,110 per 10 grams. Silver prices hovered at Rs 56,600 per kilogram.