Gold prices fall ahead of US Fed meeting Is this deal an opportunity for buyers?

According to commodity market experts, a rebound in the dollar index after higher-than-expected US economic data for the third quarter has fueled speculation that the US Fed may change its stance on interest rate hikes. This expectation of a US Fed rate hike weighed on the yellow metal in the weekend session and helped the dollar index rebound from its one-month low. He said that the current support base for spot gold is $1,630 with strong support at $1,600 an ounce level, while on MCX, gold has a strong support base around $1,630. from 49,700 49,800 level while it is facing resistance near 51,200 levels.

Commodity market experts further said that gold rate today Mainly driven by global indicators and the outcome of the US Fed meeting will be the major trigger for the price of the precious metal. He predicted limited volatility in the yellow metal’s prices until the results of the US Fed meeting are made public.

US Fed meeting

Speaking on the triggers that determine the gold rates today, Anuj Gupta, Vice President – Research at IIFL Securities said, “Gold price in the range of $1630 to $1,685 till the outcome of the US Fed meeting next week. Trade is expected to go public. After higher than expected third quarter US economic data, the dollar index has once again bounced back, leading to the fall in gold rates, said Anuj Gupta of IIFL Securities. that gold rates on MCX are expected to remain in the range from 49,700 The 51,200 level has been announced until the results of the US Fed meeting on rate hikes are announced.”

Dollar Index Rebound

Due to the fall in gold prices today, Sugandha Sachdeva, Vice President, Commodity and Currency Research at Religare Broking, said, “The US economy rebounded more than expected during the third quarter, which again boosted the dollar index from a month to a week. Gold prices fell further in late 2014. The US economy accelerated at a 2.6 per cent annualized rate from July-September amid a booming job market and against a backdrop of broader inflationary pressures and bullishness. Rates hiked by the US Fed motion.”

strategy for gold investors

Suggesting gold investors to keep an eye on the outcome of the US Fed meeting, Religare Broking’s Sugandha Sachdeva said, “All eyes will now be on the US Fed policy meeting to be held next week, where the market has already moved up by 0.75 percentage points. Investors, however, look for signs of a softer policy stance and a smaller rate hike at the Fed’s December meeting. Gold prices will also take cues from the crucial US jobs report for October, which is lined up next week. “

One can buy gold at current levels, says Anuj Gupta of IIFL Securities for short term high risk traders Target 50,900 per 10 grams and maintain stop loss at 50,100 level.

Gold Price Today: Pivot Levels You Need to Know

Religare expert said that gold prices may struggle for a while but support can be found from 49,700 49,800 per 10 g area and any downside towards the above support can be seen as buying opportunities in the coming days. high level, level 51,050 per 10 grams will restrict the rally and only a concrete breach of this can further accelerate the yellow metal.

Gold prices closed in negative territory by 0.78 per cent, closing all gains witnessed during the last week. On a monthly basis, the domestic markets continued to rally while in the international markets it was the seventh consecutive month of losses for the yellow metal. The highlight during the first half of the week was a broad-based fall in the dollar index, which heightened risk sentiment, and also supported gold prices. Disappointing US housing market data strongly buoyed that the US Fed is likely to slow the pace of its rate hike campaign, leading to a fall in the dollar index.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.