Gold Price Today: Yellow metal trades flat; US Fed meet outcome eyed
India Gold MCX October futures trade flat on Wednesday following muted trend seen in the international spot prices amid rising uncertainties triggered by China Evergrande’s debt crisis, and outcome of the US Federal Reserve meeting.
Spot gold was flat at $1,775.63 per ounce. The US Fed’s two-day meet is due to conclude on Wednesday as investors focus on any new signals on when a taper may begin, said a Reuters report.
See Zee Business Live TV Streaming Below:
On the Multi-Commodity Exchange (MCX), October gold contracts were trading 0.01 percent lower at Rs 46,633 per 10 grams at 0930 hours. September silver futures were trading 0.71 percent higher at Rs 60,870 a kilogram.
Gold and silver gained on Tuesday amid anticipation that the U.S. Federal Reserve could delay its bond tapering program after Chinese real estate company debt fiasco.
Both the precious metals settled on a positive not in the international as well as domestic markets. Gold December futures contract were settled at $1778.20 per troy ounce, and silver December futures contract settled on a positive note at $22.61 per troy ounce.
After Monday’s sell-off in the global equity markets, precious metals catch safe-haven demand on Tuesday. “Debt concerns of Chinese real estate developer Evergrande spooked global equities and supported precious metals prices at lower levels,” say analysts.
“We expect both the precious metals remain volatile in Wednesday’s session ahead of the US Federal Reserve meeting outcome but lower levels support remain intact in both the precious metals,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.
“At MCX, Gold has support at 46400-16180 and resistance at 46800-47055; silver is having support at 59900-59500 and resistance at 61000-61400 levels. We suggest buying silver on dips around 59900 with a stop loss of 59400 for the target of 61200,” he said.
Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold & silver spot and futures extended gains on Tuesday as unease over China's Evergrande insolvency spurred safe haven buying, ahead of a Federal Reserve meeting.
Domestic gold and silver futures ended higher on Tuesday tracking overseas prices. Bullion Index futures ended in the green tracking firm domestic gold and silver futures.
Short-term futures traders may have covered some shorts ahead of the FOMC, while the U.S. Dollar also fell from the 1-month high’s and lent support.
Technically, MCX Gold October above 46500 level could see a Bullish momentum up to 46700-46900 levels. Support is at 46400-46200 levels.
MCX Silver December above 60000 level could see 61000-62300 levels. Support is at 59800-59000 levels.
Bullion Index futures on MCX could start flat to marginally higher on Wednesday morning trade.
Technically, MCXBULLDEX September could trade on Bullish note within the range of 13700-14000 levels.
(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.