Gold October futures contracts at MCX opened flat on Wednesday at Rs 73,260 per 10 gram, which is down by 0.23% or Rs 166 while silver December futures contracts were trading at Rs 88,750/kg, down by 0.44% or Rs 390.
Gold and silver showed profit taking ahead of the Fed meeting outcomes with gold prices falling by Rs 240 per 10 gram while silver declining by Rs 860 per kilogram in the last 2 days.
On Tuesday, gold and silver settled on a weaker note in the international as well as the domestic markets. Gold October futures contract settled at Rs 73,094 per 10 grams with a loss of 0.55% and silver December futures contract settled at Rs 89,140 per kilogram with a loss of 0.52%.
Gold and silver rally pauses ahead of the Fed meeting outcomes. The U.S. two day’s monetary policy meeting started on Tuesday and will end on Wednesday with rate cut decisions.
Market participants booked profits in their long positions amid debate on 25 or 50 basis point rate cuts in this meeting. On the other hand, the dollar index and the U.S. 10-year bond yields are showing weakness and hints for the larger rate cuts in this policy meeting.
“The U.S. retail sales and core retail sales data released on Tuesday missed the expectations but industrial production showed positive growth in the last month and supported prices of precious metals. We expect gold and silver prices to remain volatile in today’s session ahead of the Fed meeting outcomes but expected to hold its support level of $2,522 and $29.50 per troy ounce respectively on a weekly closing basis,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.
Range for gold and silver by Manoj Kumar Jain:
- At MCX, gold is having support at 72,800-72,580 and resistance at 73,300-73,550.
- Silver has support at 88,450-87,700 and resistance at 89,950-90,500.
“We suggest staying away from gold and silver until Fed meeting outcomes,” Jain added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)