India Gold MCX August Futures trade flat-to-higher on Wednesday following positive trend in the international spot prices which were hovering around $1800 per ounce ahead of the outcome of the US Federal Reserve meeting.
“The US Fed’s policy statement is due later in the day followed by a news conference by Chairman Jerome Powell. Investors will look for cues on when the central bank will begin to taper its monetary support,” said a Reuters report.
On the Multi-Commodity Exchange (MCX), August gold contracts were trading 0.22 percent higher at Rs 47,676 for 10 grams at 0930 hours. September silver futures were trading 0.4 percent higher at Rs 66,321 a kilogram.
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Gold and silver traded on a mixed note ahead of the U.S. Federal Reserve monetary policy meeting. Gold traded steady while silver plunged on Tuesday due to China's crackdown.
Gold August futures contract settled at $1799.80 per troy ounce, and silver September futures contract settled at $24.65 per troy ounce. Both the precious metals settled on a mixed note in the domestic markets.
Gold traded steady on Tuesday amid weakness in the dollar index that slipped ahead of the FOMC meeting outcome and supported gold prices.
“Market is eyeing the outcome of 2 days FOMC meeting outcome and clues on inflation and interest rates. Market is also watching meetings between U.S. and Chinese officials this week, with indications that the two nations remain wary of each other,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
“We expect gold prices to remain steady and continue to hold its key support levels of $1778 while silver shows volatility due to extreme volatility in base metals. At MCX, gold has support at 47330-47150 and resistance at 47660-47800 levels,” he said.
Jain added that Silver has support at 65500-65100 and resistance at 66600-67100 levels. “We suggest buying in gold around 47350 with a stop loss of 47150 for the target of 47700,” he said.
Expert: Ravindra Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities
COMEX gold trades marginally higher near $1802/oz after a near flat close yesterday. Gold is supported by weaker US dollar and safe-haven buying amid rising virus cases, uneven global economic recovery and concerns about Chinese economy.
However, uncertainty ahead of the Fed decision, weaker ETF interest, and relative strength in the US equity market has kept a check on the upside.
Gold may remain choppy ahead of Fed decision however a sharp fall may be seen only if Fed sounds too hawkish.
Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold settled marginally higher on Tuesday, at the $1800/ounce mark.
International spot silver ended weaker on Tuesday. Domestic gold prices ended higher, while silver crashed on Tuesday, tracking overseas prices.
Domestic gold and silver prices could start flat to marginally higher this Wednesday morning, tracking overseas prices.
On the domestic front, MCX Gold August holds support near 47300. Resistances are at 47640 and 47804.
MCX Silver September resistances are at 66300 and 67000. Supports are at 65700 and 65000.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities Limited
Traders are advised to create a long positions in Gold and Silver near support levels, and they should also focus on important technical levels given below for the day:
August Gold closing price 47,573, Support 1 - 47400, Support 2 - 47200, Resistance 1 - 47725, Resistance 2 - 47950.
September Silver closing price 66,056, Support 1 - 65500, Support 2 - 65000, Resistance 1 - 67000, Resistance 2 – 67500.Disclaimer
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