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Gold Prices Today: Experts see further pressure on precious metals as hawkish Fed pushes US dollar to 20-year high

Gold is clearly in the oversold zone and any shave off from the US dollar could recover prices, said Pritam Patnaik of Axis Securities.

September 22, 2022 / 10:06 AM IST

Gold prices fell 1 percent on September 22 in the international markets, as the dollar rose sharply after the US Federal Reserve increased interest rates by another 75 basis points and flagged more hikes. Spot gold dropped 1 percent to $1,656.97 per ounce, as of 0114 GMT. US gold futures fell 0.5 percent to $1,667.30.

At 9:33 am, gold contracts were trading 0.06 percent lower on the Multi-Commodity Exchange (MCX) at Rs 49,414 for 10 grams and silver shed 0.24 percent at Rs 57,160 a kilogram.

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Gold and silver prices on September 21 were highly volatile in international markets, but ended higher in the domestic market as the escalating Russia-Ukraine conflict prompted investors to park funds in safe havens. Gold and silver prices capitalised on their recent gains, even as copper extended losses in international markets following an interest rate hike and hawkish message from the Federal Reserve that boosted the dollar and weighed heavily on metals markets.

Gold has support at $1647-1640, while resistance is at $1670-1782. Silver has support at $19.05-18.85, while resistance is at $19.42-19.55. In rupee terms gold has support at Rs 49,040-48880, while resistance is at Rs 49,610, 49,760. Silver has support at Rs 56,250-55,640, while resistance is at Rs 57,680–58,110.

Tapan Patel, Senior Analyst (Commodities), HDFC Securities

Gold prices traded lower on Thursday with COMEX Spot gold prices trading 0.87 percent down near $1659.50 in the morning trade. Gold prices declined post US FOMC rate decision and stronger dollar. The US Fed hiked key interest rates by 75 bps, in line with market expectations. However, the more hawkish comments from Fed chair pushed dollar index higher denting demand for gold.

We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1640 and resistance at $1676 per ounce. MCX Gold October support lies at Rs 48800 and resistance at Rs 49500 per 10 gram.

Abhishek Chauhan, Vice-President, commodities, currencies, algo at Mandot Securities

Gold prices witnessed some profit covering ahead of US Fed decision. US interest rate hike and hawkish message from the Federal Reserve boosted the dollar and weighed heavily on metal markets. Dollar index made a high of 111.445 (+1.107 ). The greenback jumped to a new 20-year high against a basket of currencies on Thursday after Fed turned hawkish for the third consecutive time for a rate hike of 75 bps.

Dollar extended gains after the Federal Reserve raised interest rates and struck a more hawkish than expected tone in its latest meeting. Metal prices witnessed some selling pressure pre and post Fed decision.

Gold has support at $1660-1650, while resistance is placed at $1690-1700.Silver at COMEX has support at $19.00-19.10, while resistance is at $19.90-20.00. In rupee terms gold at MCX has support at Rs 49050-48930, while resistance is at Rs 49,600-49,660. Silver has support at Rs 56100-56300, while resistance is at Rs 57600–57800.

Pritam Patnaik, Head - Commodities, HNI and NRI Acquisitions, Axis Securities

Gold bulls might have to endure some more patience, as the Fed delivered another 75 basis points hike on rates. While the rate hike was very much in line with the expectation, the commentary was a lot more hawkish than expected. Fed Chair Jerome Powell said the bank needed to take much more aggressive measures to combat red-hot inflation, and was prepared to put some pressure on the economy and the job market as a result. This stance pushed the dollar index to a new 20-year high, adding renewed pressure on gold prices. That said, gold is clearly in the oversold zone and any shave off from the currency could recover prices.

Disclaimer: The views and investment tips expressed by experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​
Sandip Das
first published: Sep 22, 2022 10:06 am
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