Gold traded flat on Tuesday in the international markets, after prices hit their lowest in more than one week, as the dollar held firm ahead of the US Federal Reserve policy meeting, where the central bank is likely to deliver another oversized interest rate hike.
Spot gold was listless at $1,633.69 per ounce, as of 0059 GMT, having earlier touched its lowest level since October 21. US gold futures fell 0.3 percent to $1,636.30.
At 09:59 am, gold contracts were trading 0.01 percent lower on the Multi-Commodity Exchange (MCX) at Rs 50,315 for 10 grams and silver added 0.92 percent at Rs 58,208 a kilogram.
Trading Strategy
Nirpendra Yadav, Senior Research Analyst at Swastika Investmart
Precious metals prices remained range-bound yesterday as investors are awaiting the US fed's two-day monetary policy meeting. However, China's weak manufacturing and non-manufacturing data supported the bullion prices but strength in the US dollar index capped the gains. Today trend in precious metals may remain range bound to the downside.
Gold has resistance at Rs 50600 and support at Rs 50000. Silver has resistance at Rs 58500 and support at Rs 56700.
Jigar Trivedi, Senior Research Analyst- Commodity & Currency at Reliance Securities
Yesterday Comex gold found some support near $1,630 an ounce as it dropped for the second consecutive session. It looks like traders are avoiding making a big bet in the yellow metal ahead of a highly anticipated US Fed meeting.
The metal was recently pressured by a rebound in the US dollar and treasury yields as underlying inflation pressures in the US remain elevated, keeping the Fed on course to hike rates by another 75 bps this week.
Amid rupee weakness, we may see December futures on the MCX to climb to Rs 50,450 per 10 gram. For intraday the outlook is positive.
Manoj Kumar Jain, Prithvi Finmart Commodity Research
Gold and silver prices on October 31 settled on a weaker note in the international markets. Gold December futures contract settled at $1,640.70 per troy ounce, down by 0.46 percent and silver December futures contract settled at $19.12 per troy ounce, down by 0.55 percent. Due to weakness in the rupee, domestic markets settled on a slightly positive note.
We expect gold and silver prices to remain volatile this week ahead of the US Fed policy meetings. Silver could hold its key support level of $18.84 per troy ounce. Gold has support at $1634-1622, while resistance is at $1650-1662 per troy ounce. Silver has support at $18.84-18.60, while resistance is at $19.34-19.66 per troy ounce. At MCX, gold has support at Rs 50150-49980 and resistance at Rs 50500-50660 while silver has support at Rs 57200-56750 and resistance at Rs 58000-58500. We suggest buying silver on dips around Rs 57300 with a stop loss of Rs 56900 for target of Rs 58100.
With agency inputs
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