Gold prices edged higher on Wednesday in the international markets as the dollar eased, while investors kept a close watch on the US Federal Reserve's interest rate decision and policy outlook.
Spot gold was up 0.2 percent at $1,942.96 per ounce, as of 0036 GMT. US gold futures firmed 0.3 percent to $1,946.20.
At 9:47 am, gold was down 0.08 percent on the Multi Commodity Exchange (MCX) at Rs 58,531 for 10 grams, while silver added 0.26 percent to Rs 68,571 a kilogram.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver prices settled on a weaker note in the international markets. Gold April futures contract settled at $1,941.10 per troy ounce, down by 2.00% and silver May futures contract settled at $22.43 per troy ounce, down by 0.91%. Despite weakness in the rupee, domestic markets also settled on a weaker note.
Global equity markets also recovered from their lows and ease safe-haven demand for precious metals. We expect gold and silver prices to remain volatile in today’s session and support at lower levels are expected in gold and silver.
At MCX, gold has support at Rs 58280-58080 and resistance at Rs 58800-59050 while silver has support at Rs 67850-67300 and resistance at Rs 68900-69350. We suggest buying gold above Rs 58600 with a stop loss of Rs 58380 for target of Rs 59000. Buy silver around Rs 68200 with a stop loss of Rs 67750 for target of Rs 69100.
NS Ramaswamy, Head of Commodities, Ventura Securities
COMEX gold price is stable after previous session sell off as market participant's await outcome of the Federal Reserve interest rate decision. Meanwhile , easing fear of banking crisis spelt lesser safe haven demand for the yellow metal.. The dollar index is trading below 103 level. COMEX gold has support near $1,934 while resistance is at $1,952.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX Gold prices declined 2.1 percent on March 21, to $1,941 per troy ounce, after rising briefly above $2,000 per troy ounce on March 21. Ease in US banking crisis revived risk sentiments, taking some steam off the yellow metal. US officials are studying ways they might temporarily expand Federal Deposit Insurance Corp. coverage to all deposits. Today’s major event will be the FOMC meeting. Fed is caught between Inflation and a banking crisis and Powell is in a tough spot.
We expect Fed to increase rate by 25 bps to 4.75-5 percent target range and median dot plot may slightly shift higher to 5.35 percent from the 5.1 percent indicated in December. Powell might try to maintain hawkish stance, as it is important to contain market sentiments, to curb actual inflation. We might see sideways to weak gold prices until the FOMC meeting concludes.
(With agency inputs)
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