Gold Prices Today: More volatility on the cards ahead of Union Budget, Fed policy meet

Gold, Gold prices, Yellow metal, Precious metals

Gold prices were flat on Tuesday in the international markets as market participants held back from making large bets ahead of the US Federal Reserve policy decision.

Spot gold held its ground at $1,922.26 per ounce, as of 0032 GMT. US gold futures were down 0.1 percent at $1,921.40.

At 9.55 am, gold was trading 0.22 percent higher on the Multi Commodity Exchange (MCX) at Rs 56,908 for 10 grams, while silver shed 0.07 percent to Rs 68,543 a kilogram.

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Rahul Kalantri, VP Commodities, Mehta Equities

Bullion prices were mixed as gold ended marginally lower while silver inched up on Monday. Gold witnessed select profit taking after prices hit a nine-month high last week, as futures traders now focus on key events this week, including the outcome of the Federal Reserve and the European Central Bank decision on interest rates, and the US jobs data.

The US Dollar and US Treasury bond yields rose ahead of the Fed meeting. Geo-political tensions between Iran-Israel and the Russia-Ukraine war could support safe haven buying in precious metals at lower levels.

We expect gold and silver to remain choppy ahead of the US Fed meeting and Indian Union Budget. Gold has support at $1917-1905 while resistance is at $1942-1954. Silver has support at $23.52-23.35, while resistance is at $23.98-24.15. In rupee terms, gold has support at Rs 56,620-56,480, while resistance is at Rs 57,040, 57,210. Silver has support at Rs 67,950-67,420, while resistance is at Rs 69,050–69,480.

NS Ramaswamy, Head of Commodities, Ventura Securities

COMEX gold is trading in the narrow range ahead of the US Federal Reserve policy decision. The market participants also await outcome of Bank of England (BoE) and the European Central Bank (ECB), which also have policy meetings this week. The dollar index is stable near 102 levels in early trade. COMEX gold has resistance near $1,948 and support at $1,932.

Manoj Kumar Jain, Prithvi Finmart Commodity Research

Gold and silver prices on January 30 settled on a mixed note in the international markets. Gold February futures contract settled at $1,922.90 per troy ounce, down by 0.26 percent, while silver March futures contract settled at $23.73 per troy ounce, up by 0.03 percent. Domestic markets also settled on a mixed note.

Market is already discounted 25 basis point interest rate hikes from the US Fed in this meeting but anything higher than that could adversely impact bullion markets. Global equity markets were also mixed ahead of the FOMC meetings. Crude oil prices also slipped on Monday and cap gains on gold prices. However, silver showed some strength amid Chinese demand hopes. Geo-political tensions between Iran-Israel and the Russia-Ukraine war could support safe haven buying in precious metals at lower levels. Gold could hold its key support level of $1885 and silver could hold $23 per troy ounce levels.

Gold has support at $1912-1900, while resistance at $1934-1950 per troy ounce. Silver has support at $23.55-23.20, while resistance is at $24.00-24.34 per troy ounce.

At MCX, gold has support at Rs 56880-56700 and resistance at Rs 57265-57440 while silver has support at Rs 68100-67750 and resistance at Rs 69000-69500. We suggest buying silver on dips around Rs 68200 with a stop loss of Rs 67750 for target of Rs 69100.

With agency inputs

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