Moneycontrol PRO
Open App

Gold Prices Today: Sustained upside for yellow metal unlikely until dollar corrects significantly, trend to stay negative

Gold has resistance at Rs 50,300 and support at Rs 49,500. Silver has resistance at Rs 59,000 and support at Rs 56,000

September 23, 2022 / 10:35 AM IST
Gold, gold prices

Gold, gold prices

Gold was trading flat in India and other markets on September 22 morning as the dollar held close to its recent peak while the likelihood of more aggressive interest rate hikes by the US Federal Reserve also weighed on the appeal for non-yielding bullion.

At 10.01 am, gold contracts were trading 0.04 percent lower on the Multi-Commodity Exchange (MCX) at Rs 49,980 for 10 grams and silver added 0.03 percent at Rs 58,047 a kilogram.

In the global market, spot gold was flat at $1,671.60 a troy ounce. US gold futures ticked 0.1 percent higher to $1,682.80.

Typically, the dollar and gold move in opposite direction as most commodities are priced in the American currency.

Track Live Gold Prices Here

Close

Trading Strategy

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

Comex gold was trading marginally lower near $1,678, weighed down by firmness in the US dollar and bond yields.

The US 10-year yield has jumped to the 2011 high in reaction to the Fed’s aggressive monetary tightening stance, however, the spread between 2-year and the 10-year yield narrowed.

The dollar is still near the 2002 high but has lost some momentum following the Bank of Japan’s intervention in the currency market.

Gold weathered the central bank decisions and managed to hold above recent lows, indicating that dip buyers have emerged but a sustained rise is unlikely until the dollar corrects significantly.

Tapan Patel, Senior Analyst (Commodities), HDFC Securities

Gold traded steady, with spot gold at Comex trading near $1,671 in the morning trade. Gold prices capped the downside despite a stronger dollar over recession worries as the Fed committed to raise interest rates.

We expect gold to trade sideways to down for the day, with Comex spot gold support at $1,650 and resistance at $1,690. MCX October gold futures support lies at Rs 49,600 and resistance at Rs 50,300 per 10 grams.

Nirpendra Yadav, Senior Research Analyst, Swastika Investmart

On MCX, gold and silver prices gained a percent as the dollar gained more than 1 percent. Precious metals were up at Comex despite a strong dollar due to weakness in the rupee. However, profit booking could be seen in bullion as US unemployment claims and current account data stood better.

Interest rate hikes by the Fed and the Bank of England may cap the gain in bullion prices. Gold has resistance at Rs 50,300 and support at Rs 49,500. Silver has resistance at Rs 59000 and support at Rs 56,000.

(with agency inputs)

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 23, 2022 10:35 am
Sections
ISO 27001 - BSI Assurance Mark