Fed Comments to Spur Commodity Prices

The FOMC and ECB meetings will be closely watched as both are expected to announce a 25 bps rate hike.

"According to an official order, the Central Board of Indirect Taxes and Customs (CBIC) has reduced the windfall tax on crude oil production by approximately 36 per cent to Rs 4,100 per tonne, given the softening of global oil prices. The windfall tax, which is levied as a special additional excise duty on crude oil, was previously set at Rs 6,400 per tonne since its last revision on April 19, 2023. The decision to reduce the tax was made in the public interest."

The FOMC and ECB meetings will be closely watched as both are expected to announce a 25 bps rate hike. While gold prices may ease ahead of the FOMC, any indication of a dovish stance in comments could trigger an upside in gold prices

Global investors have been confused by conflicting US data releases, which have complicated the job of the Federal Reserve. The dollar initially fell to 101 levels due to signs of stress in the banking sector and weaker business spending, but rebounded to 102 levels due to sticky inflation and slowing growth.