Gold edged lower on Tuesday in the international markets as the dollar held close to a near three-week high, while investors awaited direction on interest rate hikes from minutes of the US Federal Reserve’s last meeting.
Spot gold fell 0.2 percent to $1,774.79 per ounce, after a more than 1 percent decline on Monday. US gold futures settled down 0.5 percent at $1,789.7.
At 9.24am, gold contracts were trading 0.04 percent lower on the Multi-Commodity Exchange (MCX) at Rs 51,816 for 10 grams and silver shed 0.15 percent at Rs 58,090 a kilogram.
Trading Strategy
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
Gold prices traded firm on Wednesday with spot gold prices at COMEX were trading near $1776 per ounce in the morning trade. Gold prices have kept steady trading range near $1780 per ounce on mixed global cues and firm dollar. The market is awaiting key US retail sales data to gauge the health of US economy.
We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1760 and resistance at $1790 per ounce. MCX Gold October support lies at Rs. 51500 and resistance at Rs. 52200 per 10 grams.
Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart
Precious metals prices remained down, yesterday ahead of the FOMC meeting minutes to be released later in the day. Traders have already factored in less hawkishness of the Fed because of improved Job market data and ease in the inflation data. However, Fed officials have hinted that Fed would remain hawkish and paused the short-term rally of bullion. Today's trend in gold and silver may remain down as investors and traders await the Fed minutes. Gold has support at Rs 51500 and resistance at Rs 52300. Silver has support at Rs 56500 and resistance at Rs 58600.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver extended its fall on Tuesday amid strength in the US 10-year bond yields, gains in global equity markets and weakness in crude oil. Both the precious metals settled on a weaker note in the international markets. Gold December futures contract settled at $1789.70 per troy ounce with a loss of 0.47 percent while silver September futures contract settled at $20.09 per troy ounce with a loss of 0.91 percent. Domestic markets also settled on a weaker note.
We expect both the precious metals to remain volatile in today’s session ahead of the FOMC meeting minutes. Gold has support at $1778-1764 per troy ounce and resistance at $1800-1812 per troy ounce while silver has support at $19.84-19.55 per troy ounce and resistance at $20.30-20.58 per troy ounce. At MCX, gold has support at Rs 51660-51500 and resistance at Rs 52000-52180 while silver has support at Rs 57220-56650 and resistance at Rs 58000-58550. We suggest buying gold on dips around Rs 51700 with a stop loss of Rs 51480 for target of Rs 52100.
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