After the rise in gold and silver in the Indian markets today, there was relief after fresh gains. Gold futures down 0.3% on MCX ₹After reaching a two-month high of 48,055 per 10 grams ₹48280 intraday. Silver futures down 0.6% ₹65,700 per kg.
“MCX is trading below the trendline resistance of gold ₹48100 area, above which, the prices may look strong. In the meantime, a dip below ₹47680 may create weakness,” Geojit said in a note.
in global markets, Sleep Investors await key central bank meetings for clues about rate hikes amid rising concerns about the dollar stabilizing and inflation. Spot gold fell 0.3% to $1,802.00 an ounce, while spot silver fell 1% to $24.31 an ounce.
HDFC Securities Senior Analyst (Commodities) Tapan Patel said a firming dollar and rise in US bond yields kept gold prices under pressure today. “The dollar index rose after China shifted its policy towards growth, while investors await the outcome of the Bank of Japan and ECB policy meetings. We expect gold prices to trade with resistance against COMEX spot gold at $ 1810 and will trade sideways with support at $1785 per ounce. MCX Gold December support is at Rs.47900 and resistance is at Rs 48400 per 10 grams.
Among other precious metals, platinum fell 1.1% to $1,045.60 and palladium fell 0.6% to $2,038.95. Today, the dollar rose higher against a basket of currencies after a recent decline, making bullion more expensive for holders of other currencies.
The US Fed’s policy meeting is scheduled for next week while the Bank of Japan and the European Central Bank are scheduled to hold monetary policy meetings later this week.
Analysts say a pullback to the Dovish Fed or the US dollar could increase. Fed Chairman Jerome Powell said recently that the US central bank should begin the process of easing support for the economy by cutting its asset purchases, but should not touch the interest rate dial just yet. (with agency input)
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