Indian June Futures rebounded on April 29 tracking gains in the international spot prices which were trading higher as the dollar weakened amid plans to ease major economies out of the coronavirus lockdowns.
Investors awaited any forward guidance from the US Federal Reserve's policy statement due later in the day. “The Fed, which has responded to the current crisis by slashing interest rates, resuming bond-buying and backstopping credit markets, is scheduled to issue a policy statement later today and could begin to clarify how long it intends to leave rates near zero,” Reuters reported.
On the Multi Commodity Exchange (MCX), June gold contracts were trading higher by 0.06 percent at Rs 46,095 per 10 gram at 09:30 hours. Silver futures were trading nearly 0.55 percent higher at Rs 41,940 per kg.
Gold and silver prices settled slightly negative on Tuesday after a volatile session. Gold futures contract at Comex division slipped below $1,720 per troy ounce and silver futures contract also test $15 per troy ounce.
At MCX, Gold prices tested a low of 45,576 and settled above 46,000 levels. Silver also test lows of 41,150 and settled around 41,650. Despite downbeat US trade balance and consumer confidence data, both the precious metals show some weakness on Tuesday.
“Ahead of the US Federal Reserve policy meet some profit-taking is seen in both the precious metals. Less chance of further rate cuts from the Fed keep both the precious metals remain volatile on Wednesday,” Manoj Jain, an independent market expert told Moneycontrol.
“Gold is expected to trade in the range of 45,700-46,330 either side breakout of the range will give further direction. Silver prices are expected to move in the range of 41,300-42,100, either side breakout of the range will give further direction to the commodity,” he said.
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Expert: Sriram Iyer, Senior Research Analyst from Reliance securities
International bullion prices have started flat to higher this Wednesday morning in Asian trade as the US Dollar continued to remain weak this Wednesday morning.
Investors will now look for any forward guidance from the US Federal Reserve, which is expected to issue a policy statement tonight. Investors will also look forward to US GDP data tonight.
Technically, the LBMA Gold spot bounces back from $1,690 levels signifies that prices revert to its overall bullish trend. However mild consolidation in a range of $1,690-$1,718 is still in play.
MCX Gold June recovered from the lows of the session after taking support near 45,570 levels indicating a rebound move up to 46,300. Meanwhile, Gold could trade on a range of 45,700-46,200 levels before it appreciates above 46,600 levels.
Expert: Jateen Trivedi, Sr. Research Analyst - Commodity & Currency at LKP Securities Ltd
On the daily chart, Gold prices inched higher on Wednesday as the dollar weakened amid plans to ease major economies out of coronavirus lockdowns, while investors awaited any forward guidance from the US Federal Reserve's policy statement due later in the day.
Major moving average 20, 50, 100-Days EMA are suggesting basing move can be witnessed. Overall, the trend remains positive till the time 39,500 holds on a closing basis but volatile sessions will be seen with some profit booking on rises.
For the day 46,150-46,425 will act as resistance whereas 45,900-45,625 as supports.
Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities
COMEX gold trades in a range near $1,720/oz after a near flat close on Tuesday. Gold has benefitted from a correction in US dollar index however improving the virus-related situations has kept a check on the upside. ETF investors have also moved to sidelines awaiting fresh cues.
Market players are on sidelines ahead of Fed decision and US GDP data due today. Unless there is a surprise announcement by the Fed or worse than expected GDP growth estimate, gold may remain sideways to lower owing to improved risk sentiment.
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