Gold Prices Today: Stay away from precious metals ahead of US FOMC meet, prices to remain volatile

Gold prices fell on March 15 in international markets to their lowest in more than a week, as US Treasury yields surged ahead of an expected rate hike from the Federal Reserve, and as hopes for progress in Russia-Ukraine talks further dampened the metal's safe-haven appeal.

At 9.31am, gold contracts shed 0.79 percent at Rs 51,893 for 10 gram on the Multi-Commodity Exchange (MCX) and silver slipped 0.86 percent at Rs 68,255 a kilogram.

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Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart

Gold and silver prices have fallen ahead of the US Federal Open Market Committee (FOMC) meeting. The US treasury yield rose over expectation of an interest rate hike. Hope of the end of the ongoing conflict in Ukraine has increased risk appetite of investors. US crude oil prices fell below $100 which may control rising inflation somewhat and may keep the prices of precious metals under pressure for the time being.

Manoj Kumar Jain of Prithvi Finmart Commodity Research

Gold and silver prices plunged on Monday amid hopes of de-escalation between Russia-Ukraine and possible rate hikes by the US Federal Reserve. Both precious metals settled on a weaker note in international markets. Gold April futures contract settled at $1960.80 per troy ounce with a loss of 1.58% and silver May futures contract settled at $25.30 per troy ounce with a loss of 3.52%. Both the precious metals also settled on a weaker note in the domestic markets. We expect both the precious metals to remain volatile in today’s session ahead of the FOMC meeting. Gold is expected to test $1950 per troy ounce and silver could test $25 per troy ounce levels. Gold has support at $1950-1934 per troy ounce and resistance at $1964-1988 per troy ounce while silver has support at $25.00-24.70 per troy ounce and resistance at $25.66-26.00 per troy ounce.

At MCX, gold has support at Rs 52100-51880 and resistance at Rs 52550-52800 while silver has support at Rs 68200-67700 and resistance at Rs 69400-70100 levels. We suggest to stay away from precious metals in today’s session ahead of the FOMC meeting.

Rahul Kalantri, VP Commodities, Mehta Equities

Gold and silver on March 14 witnessed heavy sell-off on optimism of de-escalation of war between Russia-Ukraine. Both countries officials’ discussions are going on for de-escalation of war and there is a hope they will reach some conclusion soon. Global equity markets gained and pressured bullion. The US Federal Reserve's two day policy meeting is starting from today and market consensus is that the Fed could raise interest rates in this meeting and the policy tone could be hawkish this time.

We expect both the precious metals to remain volatile in today’s session as an anticipation of interest rate hike and hawkish policy statements from the Federal Reserve also triggered selling in precious metals. Gold has support at $1934-1920, while resistance at $1962-1980 per troy ounce. Silver has support at $24.70-24.35, while resistance is at $25.48-25.62. In rupee terms, gold has support at Rs 51950–51680, while resistance is at Rs 52480–52740. Silver has support at Rs 68050- 67335 while resistance is at Rs 69220–70000.

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