Gold prices were little changed on December 14 in the international markets as cautious investors focused on key central bank meetings this week, with the US Federal Reserve likely to accelerate its plans for the roll-back of its pandemic-era economic support measures.
On the Multi-Commodity Exchange (MCX), the gold contracts were down 0.09 percent, trading at Rs 48,260 for 10 grams at 9.44 am on December 14. Silver futures shed 0.22 percent to Rs 61,445 a kilogram.
Gold prices gained ahead of Central Banks' monetary policy scheduled this week. Fed has already announced speedy bond tapering, which seems to have been discounted by the market. The ECB was largely expected to reduce asset purchases by half, but Omicron variant concerns may compel the central bank to delay it, which may give further strength to prices of precious metals, said Abhishek Chauhan, Head of Commodity & Currency at Swastika Investmart.
On MCX, gold may move towards Rs 48,500-48,700 levels above Rs 48,300. It has immediate support at Rs 48,000. Silver is also looking firm, however it has resistance at Rs 62,000, above which it is likely to see a good upside, he said. Track Live Gold prices here
Trading Strategy
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver gained on December 13 ahead of the US Federal Reserve policy meeting and the fall in the US bond yields. Both the precious metals settled on a positive note in the international markets. We expect both the precious metals to remain volatile in today’s session. Gold has support at $1774-1758 per troy ounce and resistance at $1800-1812 per troy ounce, while silver has support at $22.10-21.84 per troy ounce and resistance at $22.66-22.88 per troy ounce.
On the MCX, gold has support at Rs 48,100-47,880 and resistance at Rs 48,480-48,650, while silver has support at Rs 61,220-60,900 and resistance at Rs 61,900-62,200. We suggest buying gold on dips around Rs 48,100 with a stop loss of Rs 47,880 for target of Rs 48,500.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold traded in a narrow range near $1785/oz after a 0.2% gain in the previous session. Gold traded in a range as support from virus concerns, stress in China’s property sector, geopolitical tensions and pause in equity market gains was countered by expectations that the Fed may tighten its monetary policy, which is supporting the US dollar index. Gold ETF investors are also on the sidelines awaiting fresh triggers. The yellow metal may remain rangebound ahead of the Fed decision, but monetary tightening expectations may keep pressure on prices.
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