Gold price today: Yellow metal lightens after US Fed meet; Support Rs. 51,300
Gold prices eased in India on September 17th, marking a muted trend in international spot prices after the US dollar was confirmed. The Federal Reserve has pledged to keep interest rates close to zero for at least 2023 until it limits losses to the metal.
On the Multi-Commodity Exchange (MCX), October gold deals traded at Rs. 51,380 and it was down to 0.86 per cent. September Silver Futures traded down 1.4 per cent at Rs. 67,820 per kg.
The dollar index rose 0.1 per cent compared to its rivals, making gold more expensive for those holding other currencies. Long-term U.S. Treasury yields hit a record high this week, a Reuters report said.
Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart
“We expect both the precious metals to remain volatile after the Fed meeting outcome and some corrections are expected in today’s session but geopolitical tensions and increasing coronavirus cases across the world could support prices at lower levels again,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart said.
Experts believe that the yellow metal is likely to be volatile and immediate support will be at Rs. 51,300. There will be a chance to buy any correction, they said.
On September 16th, gold and silver settled on a flat note in international markets the day before. Gold for Troy ounces, closing at $19.70-50%, Silver for Troy ounces at $27.48.
The US Federal Reserve has not changed key interest rates to 0.25 per cent and has indicated that rates will remain low for a long time until the economy recovers from the pandemic.
The upswing of the Federal Reserve’s economy has given some support to the dollar index, which has touched 93.40 again, but experts say that the central bank stance is completely wrong.
“Any correction in the prices would be an opportunity to buy again at lower levels. Gold is having support at $1,955-1,940 per troy ounce and resistance at $1,978-1,988 per troy ounce. On MCX, gold is having support at 51,550-51,300 and resistance at 52,055-52,220,” Jain said.
At MCX, silver was at Rs. 68,300-67,800 and resistance are at Rs. 69,200-69,800, he said. “We suggest buying gold and silver near support levels in Thursday’s session,” he said.
Sriram Iyer, Senior Research Analyst at Reliance Securities
The international bullion ended with small gains on September 16th as the Federal Reserve is expected to keep interest rates at current levels by 2023.
The same happened with the Federal Reserve leaving interest rates within its zero-bound range. The central bank is a little optimistic about economic growth by the end of this year and it is upside down in the bullion.
The domestic bullion could trade weak on September 17th, marking a weak start in foreign prices. Technically, MCX Gold October could not cross the 52,200 marks again. It’s a strong obstacle to further uptrend. It continues to marginally trouble by its side, where it has the support of Rs. 51,600.
The MCX December silver deal closed below Rs. 69,000 with some trouble continuing, if it falls below levels in the coming sessions.
However, less than 68,500, it continues to have marginal trouble from side to side at 67,300-66,000.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities
Comex gold was down by 69 per cent at 1,948 / oz after gained 0.2 per cent in the previous day. Gold came under pressure as the dollar index rebounded after the Fed’s decision.
However, the lack of clear indications on the Fed’s latest move helped the dollar recover. ETF investors went sideways due to a lack of direction. Gold on the dollar gains, however, the Fed’s exploitative attitude raises the price.