COMEX Gold futures saw an intense selloff last week. The metal tumbled, adding to recent losses. The metal tested a six-week low near $1760 per ounce as the US Fed turned the most critical factor for the world markets and hurt commodities The US Federal Reserve kept interest rates at zero and monthly bond buying steady. Progress on vaccinations has reduced the spread of Covid-19 in the United States, the Fed said in a statement following the conclusion of its two-day policy meeting. Amid this progress and strong policy support, indicators of economic activity and employment have strengthened. The Fed hiked its interest-rate outlook in 2023 to 0.6% from previous projections of 0.1% in March, signaling two 0.25% rate hikes in 2023. Gold was hit further as St. Louis Federal Reserve President Jim Bullard offered a fresh dose of hawkishness, saying that he thinks the Fed should lift its benchmark interest rate as early as late 2022.

Local traders also focussed on frail Indian market prospects. Pramod Kumar Tiwari, Director General, Bureau of Indian Standards (BIS) stated in a virtual press conference yesterday that mandatory Hallmarking of Gold Jewellery scheme has come into force from 16th June 2021. He noted that mandatory hallmarking has initially started with 256 districts of the country, which have Assaying and hallmarking centres. Jewellers with annual turnover upto Rs 40 lakh will be exempted from mandatory Hallmarking.

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