Gold Prices Today: Volatile trade ahead of FOMC meeting minutes, selling expected at higher levels

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Gold prices hovered near a two-week high on Wednesday in the international markets buoyed by a pullback in US Treasury yields and the dollar, with downbeat sentiment in riskier assets adding to safe-haven bullion's appeal. Spot gold held its ground at $1,865.39 per ounce, as of 0042 GMT. US gold futures were also steady at $1,864.80.

At 9:30am, gold contracts were down 0.15 percent at Rs 51,078 for 10 gram on the Multi-Commodity Exchange (MCX) while silver added 0.05 percent at Rs 62,010 a kilogram.

Precious metals are trading near two weeks' higher levels as the US dollar index remains down the previous session. US benchmark Treasury yield also slipped 4 percent. Investors are awaiting for the Fed's meeting to be released later in the day and the continue selling pressure in the global equity market may attract investors toward precious metals.

Ahead of the FOMC meeting minutes, the day trend in the precious metals may remain volatile where a profit booking can be seen at higher levels. Gold has resistance at Rs 51700 and support at Rs 50500. Silver has resistance at Rs 63000 and support at Rs 61000, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.

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Gold prices traded firm with spot gold prices at COMEX held steady trading near $1860 per ounce on Wednesday morning trade. The dollar index was trading marginal up which capped upside in the yellow metal. The US 10 year treasury yields were 0.31 percent up near 2.76 percent.

We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1840 per ounce and resistance at $1876 per ounce. MCX Gold June support lies at Rs 50900 and resistance at Rs 51500 per 10 gram.

Gold and silver prices rose to their highest in two weeks on Tuesday, with the safe-haven metal benefiting from a wilting US dollar and as Treasury yields declined on subdued risk appetite. Gold has recorded solid gains and stays above the 20-day moving average (DMA) at $1854.50 amidst a dismal market sentiment, falling US Treasury yields, and a weaker US dollar. The $1867.22 level is an important obstacle to watch out for, and above the same it will test $1888-$1900. Gold has support at $1852-1840, while resistance is at $1872-1880. Silver has support at $21.74-21.55, while resistance is at $22.28-22.48.

In rupee terms, gold has support at Rs 50,840–50,650, while resistance is at Rs 51,340–51,550. Silver has support at Rs 61,510-60,950 and resistance is at Rs 62,380–62,710.

Gold prices are rising a bid on weaker equities and geopolitical tensions. The dollar is easing again and will continue to support gold until there is some hawkish statement from the Federal Reserve.

Buy zone near Rs 51000 for target of Rs 51300

Sell zone below Rs 50800 for target of Rs 50500