Analysts believe the bullion rose as the US Fed rate hike is largely discounted by the market. Meanwhile, a fall in oil prices for the third straight day softened inflation concerns.
In line with expectations, the Fed raised rates by 25 bps, with policy signalling that this cycle will continue.
It's the first policy shift under the new Fed chief, who took office in late May after being selected by Trump with an expectation that he would cut rates
Stocks to watch today: Shares of Kanohar Electricals, Prasol Chemicals and Glass Wall Systems are slated to list on BSE and NSE today.
Markets see an 85 per cent chance of a quarter-point increase as hotter inflation and oil above $100 test Fed Chair Kevin Warsh's stance on rates and forward guidance
So far this month, the IT index remains unchanged. In July, it recorded its best gain in six months following a 17 per cent rise.
The dollar held firm near a two-week high after Kevin Warsh's hawkish remarks lifted expectations of a September rate hike, while the yen slipped below 160 per dollar
A senior Federal Reserve official has warned that lower- and middle-income Americans are struggling to make ends meet, while the central bank may need to raise interest rates if inflation stays high
Fed policy preview: The bigger risk for the market lies not in the rate decision itself but in the possibility of a more hawkish tone than markets currently anticipate.
Powell said it was not the Fed's role to comment on the Trump administration's policies but rather to react to how they might affect an economy that he and his colleagues made comment about
Fed policymakers signaled a cautious stance of their own on Wednesday at a policy meeting that left interest rates unchanged but acknowledged rising risks to both growth and inflation
The US Fed interest rate decision, global trends, tariff-related developments and trading activity of foreign investors will drive the equity market movement this week, analysts said. Among macroeconomic data announcement, WPI inflation for February is scheduled to be announced on Monday. "Persistent uncertainties surrounding global trade and the fear of a US recession may continue to influence the domestic market's momentum," Vinod Nair, Head of Research, Geojit Financial Services, said. However, the moderation in valuations following recent corrections, along with supportive factors such as falling crude oil prices, an easing dollar index, and expectations of a rebound in domestic earnings in the coming quarters, may limit the volatility and is expected to contribute to stability amid prevailing trade uncertainties, he said. "This week's release of China's retail sales growth data and industrial production data will provide a clearer understanding of the Chinese economic growth .
Central bankers also have their eye on any signs of weakness in the labor market that could trigger an interest rate cut
Asian currencies were mostly higher, with the Chinese yuan ticking higher as the country's economic growth beat forecasts
Officials voted unanimously to lower the federal funds rate to a range of 4.5% to 4.75%. The adjustment follows a larger, half-point cut in September
The Fed meets July 30-31, but under the central bank's rules policymakers can't comment about monetary policy from this Saturday, July 20, until the Friday after the meeting
At the same time, the labour market - the other part of the Fed's dual mandate - is still plugging along, albeit in a lower gear
Quarterly earnings from corporates, the US Fed interest rate decision and other global trends will be the major driving factors for determining movement in the domestic equity market in a holiday-shortened week ahead, analysts said. Besides, factors like trading activity of foreign investors, global oil benchmark Brent crude and rupee-dollar trend would also influence trading. Domestic equity markets would remain closed on Wednesday on account of Maharashtra Day. "Domestically, the next batch of Q4 earnings reports will drive stock-specific movements," said Santosh Meena, Head of Research, Swastika Investmart Ltd. Monthly auto sales figures will be announced at the beginning of May, and the next phase of voting will be significant, he said. "On the global front, the outcome of the US Federal Open Market Committee (FOMC) meeting on May 1st will be important. Economic data releases from China and the US, along with movement in the global currency market, will also be the factors to
In the euro zone, data may show that the slowdown in inflation stalled in April for the first time this year
The worst thing to do is act urgently when urgency is not required, Daly, one of 19 US central bankers who set monetary policy, said at the Stanford Institute for Economic Policy Research