Gold Prices Today: Bullish trend likely to continue in yellow metal, investors eye FOMC meeting outcome

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Gold prices were flat on Wednesday in the international markets, with investors readying themselves for the US Federal Reserve's rate-hike decision later in the day.

Spot gold was little changed at $1,809.35 per ounce, as of 0046 GMT. US gold futures were down 0.2% at $1,821.10.

Bullion prices hit a more than five-month high on Tuesday after a smaller-than-expected rise in US consumer prices buoyed bets for a slowdown in rate hikes from the Fed.

At 09:38 am, gold contracts were trading 0.22 percent higher on the Multi Commodity Exchange (MCX) at Rs 54,866 for 10 grams. Silver had added 0.41 percent at Rs 69,055 a kilogram.

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Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities

Gold price steady on Wednesday with spot gold price at COMEX were trading 0.05% up near $1812 per ounce in the morning trade. Gold prices hit a more than five-month high on Tuesday after a smaller-than-expected rise in US consumer prices buoyed bets for a slowdown in rate hikes from the Fed.

We expect gold price bullish trend likely to continue until price holds above $1780 support level. Comex spot gold has a resistance at $1829 per ounce and support at $1795/$1780 per ounce. MCX Gold February has support at Rs 54600 per 10 grams and resistance at Rs 55080 per 10 grams.

Nirpendra Yadav, Senior Research Analyst, Swastika Investmart

Precious metal gained as cooling off inflation calmed the fear of higher interest rates. The US dollar index slipped below the 103.50 level and kicked off bullion prices yesterday. The expectation of ease in monetary policy supporting the precious metals. However, today's FOMC meeting outcome, scheduled later in the day, could be the key trigger for bullion.

Today's trend in gold and silver may remain on the upside. Gold has resistance at Rs 55200 and support at Rs 54300. Silver has resistance at Rs 69800 and support at Rs 68000.

Deveya Gaglani, Research Analyst, Axis Securities

Gold prices opened with an upward gap in the last session and remained in the positive terrain throughout the day. Prices on the daily chart have given a breakout in the last session after CPI data. The hot inflation cooled down. The data print came at 7.1% YoY against the forecast of 7.8% YoY. Traders will now focus on the Fed meeting due later in the day. The expectation is to hike the interest rate by 50 bps points. Prices made a new multi-month high of Rs 55000 level.

On the daily chart, the momentum indicator, RSI, is trading above 60 levels and the price is trading above 20 and 60 days EMA, which is positive for prices. It has formed a large bullish candle and has closed above the previous session high, which indicates the trend is strong. Any correction down to Rs 54600 is a good opportunity to buy gold for target of Rs 54900 on an intraday basis.

(With agency inputs)

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