Domestic gold prices fell sharply today on the back of a sharp fall in global rates coupled with a rise in the US dollar. Bullion futures fall 0.5% 50,494 per 10 grams after being range bound in the last few sessions. Silver down 0.75% 57,848 per kg. In international markets, gold fell 1% to $1,648.46 an ounce, as the dollar index rose 0.3%, reducing the appeal of rival safe-haven bullion. Spot silver fell 1.9% to $19.20 an ounce, while palladium fell 0.9% to $1,924.66.
“Gold prices remained volatile between 50300-50850 as prices saw a range session between $1635-1675 in COMEX Gold, keeping buyers and sellers neutral with gains for sellers as prices moved up to $10 in COMEX. saw a decline and MCX shed 200 points, said Jatin Trivedi, VP Research Analyst, LKP Securities. Gold prices await further cues from the Fed’s outlook on inflation and interest rate stance, as highly volatile dollar prices have hit gold in recent days. has had a strong impact on the price of
,Sleep Can be seen in the range 50250-50850. Any side break can take the price from 49500 to 51500.”
Investors’ attention will be on the Federal Reserve meeting next week. The US central bank is expected to raise rates by 75-basis-point at the conclusion of its November 1-2 policy meeting, but some analysts expect a smaller increase in December.
Overall, rising rate bets have put gold on a seventh straight monthly decline. gold prices jumped up in india 55,000 in March but has struggled to regain the brightness since then.
The Indian rupee posted a weekly increase on bets that the US Federal Reserve would hike rates in smaller sizes from December.
In a note, Kotak Securities said: “Last week, comments from Mary Daly, Chair of the Federal Reserve Bank of San Francisco, pointed toward the potential for some debate among Fed officials about slowing aggressive rate hikes after the November meeting. She said the Fed should avoid putting the economy into an “unexpected recession” by raising interest rates too quickly, and it’s time to start talking about slowing the pace of borrowing costs. It added to the stakes that future interest rate hikes could come in small increments. The Fed’s target neutral rate, although the Fed is set to raise its benchmark rate again by 75 basis points at its November policy meeting. Also, both investment and speculative demand declined as the latest CFTC report showed speculators switched to net short positions of 20,633 contracts.COMEX gold in the week ended October 18 while SPDR gold holdings hit a 31-month low. 928.39 tonnes.
According to Rahul Kalantri, Vice President, Mehta Equities Ltd., silver has support at $19.34-19.15, while resistance is at $19.82-19.95. On MCX, silver has support at Rs 57,570-56,980, while resistance is at Rs 58,680-58,980. , He added.
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