As traders hold their breath ahead of tonight’s Fed decision, global markets are showing early signs of tension. The U.S. Federal Reserve is widely expected to keep its interest rates unchanged in the 4.25% to 4.5% range, a move anticipated since December 2024. Meanwhile, renewed discussions between Washington and Beijing over trade tariffs have also injected fresh uncertainty into the market atmosphere.
With the Fed meeting scheduled for 11:30 p.m. IST and Chairman Powell’s remarks soon after, Indian investors should stay alert for overnight cues that could ripple into Thursday’s session.
Gold Prices on the Edge: What Indian Buyers Should Know?
Gold, both in MCX India and globally, has been trading in a tight range. With the Fed expected to hold rates, gold prices might see a mild bullish tilt due to steady U.S. yields. However, if Powell hints at future tightening to control sticky inflation, we could witness a short-term dip in gold.
International gold remains around $3,388 /oz, but Indian gold prices could swing based on INR/USD movement and global cues. If trade talks between the U.S. and China escalate into more tariffs, gold may get a safe-haven boost and vice-versa. Indian buyers looking to invest in gold jewellery or ETFs should closely track the next 24 hours.
Stock Markets: What Nifty and Wall Street Traders Should Brace For?
Wall Street showed mild gains ahead of the Fed, with the Dow Jones and S&P 500 edging higher. This suggests investors are pricing in no hike but staying cautious. If Powell’s press conference leans dovish, we may see U.S. equities rally—especially in rate-sensitive sectors like tech and banking.
Back home, Nifty 50 and Sensex may react sharply tomorrow morning. A dovish Fed stance paired with positive trade signals from the U.S.-China front could support Indian markets. However, if trade tensions flare up again, expect volatility in metal stocks and global exporters like Tata Steel, Infosys, and Maruti.
What Traders Should Do Tonight and Tomorrow Morning?
For intraday and positional traders, staying updated through the night will be crucial. Watch out for Powell’s tone—hawkish or dovish. Also, keep an eye on trade talk headlines. Any surprise from either front could shake sentiment in commodity and equity markets.
For gold traders, consider placing stop-losses or hedges in place. Stock market participants should prepare for a gap-up or gap-down opening based on U.S. market reactions post-Fed meet.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
