Gold Price Today, 16 June 2022: Gold prices gain on interest rate hike by US Fed; support at Rs 50200 Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading half a per cent up on Thursday, even as globally yellow metal rates remained steady. On Multi Commodity Exchange, gold August futures were trading Rs 231 or 0.5 per cent up at Rs 50,669 per 10 gram, as against the previous close of Rs 50,438. Silver July futures were up at Rs 61,139 per kg, gaining Rs 442 or 0.7 per cent on MCX. Globally, yellow metal was flat after a jump in the previous session on falling Treasury yields and a weaker dollar, which were driven lower by a large but widely expected interest rate hike announcement from the U.S. Federal Reserve, according to Reuters. Spot gold was little changed at $1,832.86 per ounce. U.S. gold futures rose 1% to $1,836.90. Pritam Patnaik, Head – Commodities, HNI, and NRI Acquisitions, Axis Securities Tapan Patel, Senior Analyst — Commodities, HDFC Securities Gold prices held steady on Thursday with COMEX Spot gold prices were trading near $1832 per ounce in the morning trade. MCX Gold Aug futures were trading near Rs. 50619 per 10 gram in the opening trade. Gold prices held strong post US FOMC rate decision where FED hiked key interest rates by 75 bps, the largest since 1994. The weaker dollar and fall in US bond yields pushed bullion prices higher on economic growth worries. We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1810 and resistance at $1842 per ounce. MCX Gold Aug support lies at Rs. 50200 and resistance at Rs. 50900 per 10 gram. Bhavik Patel, Commodity/Currency Analyst, Tradebulls Securities The US Fed took the most aggressive action since 1994 by raising the interest rate by 75 bps. Traders and speculators were expecting such aggressive rate hikes and that is why we did not see any huge reaction post rate hike. The Fed also anticipates that interest rates will continue to increase around 3.4% by the end of 2022 and 3.8% by end of 2023. Stocks and metals got a boost while USD retraced after US Fed said that after Fed’s neutral rate of 2.5%, they will go for 25bps instead of 50 and 75bps. Gold gained nearly $22 after the statement released from Fed and today also is expected to trade on the higher side. Market is also factoring another rate hike of 75 bps in July but after that the US Fed will raise rates by either 25 or 50 bps. We believe gold has bottomed out in the short term and would remain consolidated in the range of $1800-$1850 in COMEX while 49800-51500 in MCX. (The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)
Logistics, good or bad, are driven by the states and the commerce ministry has a LEADS (Logistics Ease Across Different States) report, based on perceptions. The 2023 version was released in December. Since states are heterogenous, in the reporting, they are divided into four groups—coastal, landlocked, north-east, and UTs. States that do well are called achievers. Nomenclature matters. Thus, states that are middling aren’t called average. They are called fast movers. States that are sub-par are called aspirers. Let me highlight coastal states, since 75% of export cargo is estimated to originate from them. Among coastal states, ones that do well are Andhra Pradesh, Gujarat, Karnataka, and Tamil Nadu. The ones that lag are Goa, Odisha, and West Bengal. While India’s logistics performance may have improved over time, that’s not true of every state. Some have slipped. Most states have a state-level logistics policy, including Goa and Odisha. West Bengal, bottom of the pecking order in the coastal category, doesn’t have one. To quote from LEADS 2023, “Looking ahead, the State (West Bengal) could benefit from formulating a State Logistics Master Plan and State Logistics Policy to drive efficiency improvements and facilitate investments within the logistics sector and undertake consultation with the logistics stakeholders for educating and informing them about the initiatives State is undertaking for the development and improvement of logistics sector.”
Logistics has been talked about for a long time and India has also focused on improving performance. We are now getting some precise data on measurement and quantification. That helps.
Bibek Debroy, chairman, EAC-PM. Views are personal.