Gold price today: Yellow metal trades in India face resistance

Gold price today: Yellow metal trading above Rs 51,500; May face resistance near 51,800

Gold prices rose in India on September 14 following a positive trend in international spot prices, with investors waiting for the US Federal Reserve’s monetary policy decision later this week.

On the Multi-Commodity Exchange (MCX), gold for October trading rose 0.40 percent to Rs 51,525 per 10 grams at 0920 hours. September Silver Futures traded 0.5 percent higher at Rs 68,288 per kg.

Last week, gold and silver prices rebounded from their lows and settled on a positive note. Gold rose 0.72 percent to $ 1948.25 per troy ounce and silver rose 0.74 percent to $ 26.91 per troy ounce.

Also in MCX, both metals settled on a positive note. Gold rose by 1 percent to Rs 51,319 per 10 grams and silver by Rs 67,918 per kg, up nearly 1 percent.

During the week, the European Central Bank did not change key interest rates at 0.00 percent and there was no clarity on further stimulus from her ECB president at a press conference.

Experts believe that both gold and silver remain volatile. The next big resistance that gold can face is around Rs 51,800, while in negative territory, the key support is Rs 50,920.

Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart

“Ahead of the US Federal Reserve meeting on interest rates and outlook on the economy, this week will give further directions to the dollar index and precious metals. We expect both the precious metals to remain volatile and expected to hold key support levels,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart said.

“Gold is having support at $1,922-1,910 per troy ounce and resistance at $1,972-1,984 per troy ounce. On MCX, gold has support near 50,920-50,650, and resistance is placed at 51,520-51,800 levels,” he said.

Silver to Troy ounces. At 26.20-25.80, for every troy ounce. Jain said there was resistance at 27.40-28.00. At MCX, silver is at Rs 66,750-65,900 and resistance is at Rs 68,800-69,500.

Trading Strategy

Sriram Iyer, Senior Research Analyst at Reliance Securities

International spot gold and silver prices fell on September 11 due to a lack of further stimulus from the ECB and the US government.

However, prices rose for the first time in four weeks in support of a secure appeal for metals over concerns over economic recovery. Prices consolidated ahead of the US Fed meeting on September 15-16.

The domestic bullion will be able to trade flat-to-high on the morning of September 14, which will track the opening of a decline in foreign prices. Prices may consolidate before the Fed meeting.

Technically, MCX October gold gave a bearish session with less than 51,300, which represents the bearish width over the counter. However, the 51550-51700 acts as a further upside down barrier. It can trade in the range of 50,900-51,400.

The MCX December silver deal closed below 68,000, which could be a negative breath on the counter. However, less than 68,000, silver tends to marginalize 67,300-66,000.

Hareesh V Head of Commodity Research at Geojit Financial Services

Gold continues to see volatile trade on optimism that the epidemic may soon be under control and that it could touch demand for safer commodities such as gold. However, dollar performance, fresh stimulus measures, and US-China trade concerns continue to affect the yellow metal.

Technical Outlook (London spot):

A range-bound trade within 8 1,880-1,975 per ounce is initially hierarchical and a break on either side indicates a new direction for the shipment.

Disclaimer :

The perspectives and investment tips are given in this section are the expert’s own and not that of the website or its management. We encourage clients to check with certified experts before taking any position in the stocks/shares mentioned.

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