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Gold Prices Today: Rising oil price to support yellow metal, hawkish US Fed to cap gains

"We recommend to wait for the policy outcome and later short the yellow metal in case MCX October futures slip below Rs 49,850 per 10 gram," said Jigar Trivedi of Reliance Securities.

September 30, 2022 / 09:43 AM IST
Gold, gold prices

Gold, gold prices

Gold prices edged higher on Friday in the international markets supported by a pullback in the US dollar, but the Federal Reserve's commitment to stay on an aggressive rate-hike path kept the metal on track for its sixth straight monthly decline.

Spot gold was up 0.2% at $1,663.79 per ounce as of 0110 GMT. While prices are headed for their biggest weekly gain in seven, they are down 2.8% for the month so far.

At 9:35 am, gold contracts were trading 0.05 percent lower on the Multi-Commodity Exchange (MCX) at Rs 49,971 for 10 grams and silver added 0.35 percent at Rs 56,355 a kilogram.

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Nirpendra yadav, Senior Research Analyst at Swastika Investmart

Precious metals gained as the US dollar index remained down for a second consecutive day. However, an FOMC member signalled tighter monetary policy this year as US unemployment claims and other economic data outperformed expectations, limiting precious metals' gains yesterday. Crude oil prices gained for a third consecutive day on production cut expectations, which may support bullion prices today. Gold has support at Rs 49700 and resistance at Rs 50400. Silver has support at Rs 55200 and resistance at Rs 56600.

Jigar Trivedi, Senior Research Analyst - Commodity & Currency at Reliance Securities

MCX Gold October has advanced by 1.2% in the week gone by, is trading in a tight range ahead of RBI Policy decision. The RBI is likely to announce a 50 bps hike in the policy and rupee may strengthen in case of hawkish statements.

The dollar index gave up earlier gains falling toward 112 after tumbling more than 1% in the previous session, as the pound pushed above $1.11 and the Yuan gained for the first time in nine days after the CCP warned of further currency intervention.

On the data front, fresh data showed weekly claims fell to a 5-month, and PCE prices were revised higher in Q2.

Hawkish remarks from Federal Reserve officials and the rejection of a possible currency agreement among major economies also supported the dollar.

For today, we recommend to wait for the policy outcome and later short the yellow metal in case MCX October futures slip below Rs 49,850 per 10 gram.

(Agency inputs)

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Sandip Das
first published: Sep 30, 2022 09:43 am