Commodities gain after US Fed hikes rates

Commodity prices, led by gold, advanced in the international market and in India, following a quarter per cent increase in rates by the US Federal Reserve on Wednesday. Markets read the Federal Reserve’s announcement as dovish, as now only two rate hikes are expected this year. Pro-Europe parties’ victory in the Netherlands election, which weakened Euro, also helped the price surge. Dutch voters turned out in large numbers to back the Liberal Party, easing concerns about the rise of populism in the region. Immediately after the rate hike on Wednesday, gold went up over two per cent, and on Thursday, it was trading at $1,231 per ounce. In Mumbai’s Zaveri Bazar, standard gold closed at Rs 28,420 per 10 gm, which was Rs 355 higher than the previous day. Silver went up by Rs 900 to close at Rs 41,540 per kg. T Gnanasekar, director, Commtrendz Research, said, “After the dovish statements from FOMC (Federal Open Market Committee), risk appetite got a boost. Bullion got a reprieve, and metals and crude too. The firm trend is likely to continue at least till early next month.” Financial Astrology Tips