Gold futures on the COMEX declined as the US Federal Reserve’s rate hike
strengthened the dollar against the euro. Meeting the estimates The US central bank raised
federal funds rate by 25 bps to 0.25-0.50%. Federal Reserve Chair Janet Yellen said the rise
reflects the committee’s confidence that the economy will continue to strengthen. Confidence in
the US economy and a strong dollar dims gold’s appeal as a safe-haven asset. Yellow metal
have already discounted on Fed fear thus there won’t be sharp reductions in the prices but
25000-24900 levels are expected in near term. Silver also fell below 34000 likely to take
support at 33700-500 levels today. Selling on rise in bullions is to be continued for coming
days. Rupee appreciation against USD will also add further downside to the prices.

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