Gold price today: Yellow metal trades flat above Rs 49,000; US Fed meeting in focus

gold

India Gold February futures trade flat on December 15 but with a positive bias as investors wait for the outcome of the US Federal Reserve meeting which will begin on December 15-16.

On the Multi-Commodity Exchange (MCX), February gold contracts were trading higher by 0.21 percent at Rs 49,044 per 10 gram at 09:20 hours. March silver was trading 0.31 percent higher at Rs 63,667 per kilogram.

Experts are of the view that precious metals could remain volatile ahead of the outcome of the US Fed meeting. The immediate support for Gold is placed at Rs 48,700 while on the upside, the yellow metal could face resistance near Rs 49150.

Gold and silver prices showed some weakness on December 14 amid investors' risk appetite turned up after the U.S. rolled out the COVID-19 vaccine. Despite weakness in the dollar index both the precious metals were settled on a weaker note.

Gold February futures contract were settled at $1832.10 per troy ounce while Silver March futures contract settled at $24.05 per troy ounce.

Both the precious metals were also settled on a weaker note in the domestic markets. Safe-haven assets slipped on Monday amid progress on COVID-19 vaccines and the possibility of a U.S. coronavirus relief plan, suggest experts.

“Market is also eyeing two day’s U.S. Federal Reserve policy meeting starting from today, which could reveal insight on the plans for the U.S. central bank in the coming year. We expect both the precious metals to remain volatile in today’s session ahead of the U.S. Federal Reserve meeting and volatility in the dollar index,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.

“Gold has support at $1818-1800 per troy ounce and resistance at $1844-1858 per troy ounce. Silver has support at $23.80-23.55 per troy ounce and resistance at $24.30-24.60 per troy ounce,” he said.

Jain further added that at MCX, Gold has support at 48700-48500 levels and resistance at 49150-49400 levels. “Silver is having support at 62800-62400 levels and resistance at 64000-64500 levels. We expect both sides moves in precious metals in today’s session,” he said.

Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold and silver prices fell on Monday as the rollout of a COVID-19 vaccine in the United States drove optimism in wider financial markets with investors hoping for a swift economic recovery.

Domestic gold and silver ended weak on Monday, tracking overseas prices. Hopes of a global recovery and a decision to extend trade talks between Britain and the European Union also supported European shares.

Domestic bullion could start flat to marginally higher this Tuesday morning, tracking the international prices.

Technically, MCX Gold February was unable to sustain above 49000 levels indicating a sideways to marginal downside momentum up to 48800-48500 levels. Resistance is at 49100-49300 levels.

MCX Silver March has given a breakdown below 64000 levels where it traded in a narrow range indicating a sideways to marginal downside momentum to continue below 63000 levels up to 62050-60700 levels.

COMEX gold trades mixed near $1830/oz after a 0.6% decline yesterday. Weighing on the gold price is vaccine progress, delay in US stimulus despite efforts, easing political concerns in the US with the Electoral College confirming Joe Biden win and continuing ETF outflows.

Rising virus cases, weaker US dollar and Brexit uncertainty has however limited downside.

Gold may witness choppy trade amid mixed cues however general bias may be on the downside unless there is a pick-up in ETF buying or more clarity on US stimulus.

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