Fed rate hike pulls gold prices a tad

Hyderabad: As was expected after a long span of seven years, the Federal Reserve has finally revised upwardly the interest rates by 0.25 per cent bring chill and cheers into market circles.

While in US, there has been a high degree of optimism, in the developing economies like ours, there appears to be a mixed reaction to this development. The flight of foreign capital as was feared as a fall out of the Fed rate hike has so far not been of frightening levels.

True, gold prices have declined marginally immediately after the announcement of interest rates hike but it appears this trend is just momentary given the high volatility of the stock market.

Here at home, the impact of global market trend was felt. As a result, standard gold and its ornamental form declined by Rs 420 (per 10 gms) while silver (0.999) lost just Rs 100 (per kg) during the week.

Hyderabad Gold Market On the closing day standard gold (24 carats) closed at Rs 25,480 (per 10 gms) vis-à-vis Rs 25,900 in the previous week. The ornamental gold was quoted in the range of Rs 24,870 - 24,970 (per 10 gms). Silver (0.999) closed at the marginally lower level of Rs 33,900 (per kg).

The sentiment in principal commodity markets at the Osmangunj, Risala Abdullah, Mir Alam Mandi, General Bazar, Saroornagar, Bowenpally, Kukatpally and Dilsukh Nagar was consistently firm. During consecutively second week, garlic, jeera and chilies recorded a marginal appreciation of 3 per cent to 4.5 per cent while onion, turmeric, tamarind and til-seeds declined marginally.