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Gold Price Today: Yellow metal trades under pressure amid strong dollar, higher bond yields

The upside in gold may remain limited as Fed chair Powell's speech scheduled in the evening, may put pressure on gold prices at higher levels," said Abhishek Chauhan of Swastika Investmart.

September 28, 2021 / 09:39 AM IST

Gold prices eased on September 28, hurt by a stronger dollar and rising US Treasury yields, while investors awaited more cues from Federal Reserve officials on the central bank's monetary policy shift.

On the Multi-Commodity Exchange (MCX), October gold contracts were trading higher by 0.36 percent at Rs 46,162 for 10 grams at 0935 hours. September silver futures were up by 1.04 percent at Rs 60,578 a kilogram.

Gold prices slipped by 104 to Rs 46,170 per 10 gram on subdued global cues, stronger dollar but the downside was capped by rupee depreciation. The yellow metal was supported by increased demand in China, safe-haven appeal as investors track the ongoing situation of cash-strapped property developer Evergrande.

"Gold prices recovered marginally from lower levels and they remained flat in the previous reading session. It is likely to extend its recovery today as cues from Fed members were mixed in yesterday's speech. However, the upside may remain limited as Fed chair Powell's speech scheduled in the evening, may put pressure on gold prices at higher levels," said Abhishek Chauhan, Head of Commodity & Currency at Swastika Investmart.

"On the other side, consumer confidence data from the US front is also estimated to be higher than previous. In MCX, gold has resistance at 46400 and support at 45900," he added.

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Trading Strategy

Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research

Gold and silver traded steady on Monday in the international markets and both the precious metals were settled on a slightly positive note. We expect both the precious metals to remain volatile in today’s session and gold is expected to hold $1740 per troy ounce levels. Gold has support at $1740-1728 per troy ounce and resistance at $1764-1778 per troy ounce while silver has support at $22.55-22.20 per troy ounce and resistance at $22.88-23.20 per troy ounce.

At MCX, gold has support at 45900-45660 and resistance at 46300-46550 while silver has support at 60100-59800 and resistance at 61100-61600 levels. We suggest buying gold on dips around 45900 with a stop loss of 45720 for the target of 46300.

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

COMEX gold trades little changed near $1753/oz after a flat close in previous session. Gold is range bound as support from global growth worries and rising inflation concerns amid energy crisis is countered by firmness in US dollar and increased expectations of monetary tightening by Fed and other central banks. ETF outflows also show weaker investor interest. Gold may remain choppy as safe haven buying will be offset by Fed's rate hike expectations.

Amit khare, AVP- Research Commodities, Ganganagar Commodity

Gold and silver showed a positive movement on the September 27. Yesterday we have seen some short covering rally in gold and silver at bottom levels, which may continue for next few trading sessions, Both metals are trading at oversold zone. Momentum indicator RSI also indicating the same and creating a strong positive divergence in 4 hourly as well as daily chart, so traders are advised to create fresh long positions in gold and silver on small dips. Traders should focus important technical levels.

October gold closing price 46069, Support 1 - 45850, Support 2 - 45700, Resistance 1 - 46250, Resistance 2 - 46500.

December silver closing price 60634, Support 1 - 60000, Support 2 - 59300, Resistance 1 - 61200, Resistance 2 - 61700.

Sandeep Matta, Founder, TRADEIT Investment Advisor

Gold prices remained mostly steady with some early sign of short covering by traders however the near-term trend is still bearish. The federal reserve will continue to remain in focus which has contained any big move in the precious metal due to its updated commentating on tapering. Gold prices are under pressure due to bond yield which are trading at three months higher and robust dollar.

Key level for gold August Contract – 46064
Buy zone above – 46090 for the target of 46200-46337

Sell zone below – 46050 for the target of 45900-45765

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Sandip Das
first published: Sep 28, 2021 09:39 am

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