NEW DELHI: Gold prices edged up mildly on Wednesday. Investors await the outcome of the US Federal Reserve’s meeting tonight for hints on policy tapering plans. The yellow metal held near its key psychological level.
Gold futures on MCX were up 0.18 per cent, or Rs 87, at Rs 47,660 per 10 gram. Silver futures were trading 0.40 per cent, or Rs 264, higher at 66,320 per kg.
In the international market, gold prices are holding steady near $1,800 level. Gold saw limited selling interest amid a drop in the US Dollar Index but silver dropped sharply to a near four-month low.
Gold is supported by a weaker US dollar and safe haven buying amid rising virus cases, uneven global economic recovery and concerns about Chinese economy, said Ravindra Rao, Head – Commodity Research, Kotak Securities.
“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,” he added.
In the spot market, highest purity gold was sold at Rs 47,724 per 10 grams while silver was priced at Rs 66,988 per kg on Monday, according to the Indian Bullion and Jewellers Association.
The prices of physical gold and silver have remained mostly flat in the last one week. However, analysts expect that demand is likely to move northwards in coming weeks.
The International Monetary Fund has maintained its 6 per cent global growth forecast for 2021, upgrading its outlook for the United States and other wealthy economies but cutting estimates for developing countries struggling with surging COVID-19 infections.
Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,790 and resistance at $1,810 per ounce. MCX Gold August support lies at Rs 47,200 and resistance at Rs 47,800 per 10 gram,” said Patel, of HDFC Securities.
Global markets
Spot gold was flat at $1,798.75 per ounce by 0106 GMT. US gold futures fell 0.1% to $1,798.20 per ounce.
Silver was flat at $24.67 per ounce, having hit its lowest level in nearly four months at $24.46 on Tuesday. Palladium fell 0.1% to $2,605.01 per ounce, while platinum rose 0.22% to $1,052.93.