The US Federal Reserve cut interest rates by 50 basis points to 4.75-5%, the first cut in four years. This signals a shift in monetary policy.
The Fed plans two more 25 basis point cuts in 2024, with an additional 100 bps expected by 2025, continuing the monetary easing into 2026.
Rate cuts often boost gold prices due to lower opportunity costs, inflation concerns, and a weaker dollar. Prices hover near lifetime highs globally.
US Fed rate cuts will reduce borrowing costs for mortgages, auto loans, credit cards, and business loans, stimulating economic growth over time.
Lower interest rates may drive business spending and stock prices in the US, with potential medium to long-term benefits for Indian markets as well.
Nifty faces resistance near 25,500 but could reach 25,800 if it closes above this level. Otherwise, expect consolidation between 25,000-25,500.
Key support for Nifty is placed between 25,100-25,000, aligning with the 20-day EMA and the rising trendline from recent lows over two months.