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    Sensex, Nifty trade lower amid volatility; IT stocks outperform

    Sensex, Nifty trade lower amid volatility; IT stocks outperform


    May 19, 2023 / 10:13 AM IST

    Hawkish Powell commentsmight lead to further weakness in gold prices, saysRavindra V. Rao of Kotak Securities

    COMEX Gold prices plunged for the third day, down more than 1% and closed at a one and half month low of USD 1,959.8 per troy ounce on Thursday, amid a sharp surge in greenback, better than expected economic data from US and hawkish comments from Fed officials.

    US weekly jobless claims fell more than expected, while, Philadelphia factory activity shrank less than forecasts, boosting the dollar index and treasury yields. Risk sentiments improved, as House Speaker Kevin McCarthy said that negotiators on the federal debt limit may reach an agreement in principle as soon as this weekend.

    In contrasting comments on Thursday, Fed Governor Philip Jefferson outlined the dovish case for pause in the June meeting, while Dallas Fed President Lorie Logan suggested that she’s not ready to call a halt to the Fed’s tightening campaign. Meanwhile, Atlanta Fed President Raphael Bostic said that “a pause could be a skip or it could be a hold.”

    Fed Chair Jerome Powell is due to speak later today at a Fed conference in Washington, and investors might stay cautious. Hawkish comments from Powell might lead to further weakness in gold prices whereas a dovish tilt might trigger short covering.



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