Gold prices in India traded flat on the Multi Commodity Exchange (MCX) Tuesday on cautiousness ahead of the US Federal Reserve meeting this week.
At 11:35 am, gold futures for August delivery eased 0.06 percent to Rs 47,432 per 10 grams as against the previous close of Rs 47,461 and the opening price of Rs 47,446 on the MCX. Silver futures traded 0.05 percent higher at Rs 67,156 per kg. The prices opened at Rs 67,357 as compared to the previous close of Rs 67,121 per kg.
“Gold prices are rangebound as investors turned cautious ahead of the Fed’s meeting. The undertone remains sideways to negative. However, the downside will be capped due to concerns over rising Delta variant of coronavirus,” said Ajay Kedia, Director, Kedia Advisory.
Meanwhile, strength in the Indian rupee amid gains in the domestic equity market also pressurized the precious metal prices.
“On MCX, gold may find support at Rs 47,250 and resistance is seen at Rs 47,720. Support for silver is placed at Rs 66,400 and resistance at Rs 67,560,” Kedia added.
International gold traded in a tight range on Tuesday, pinned below the $1,800 psychological level, as investors focused on this week’s Federal Reserve meeting for clues about when the central bank might rein in its easy monetary policies, said a Reuters report.
Spot gold was flat at $1,797.71 per ounce. US gold futures fell 0.1 percent to $1,797.70 per ounce.
The dollar index held steady just below recent peaks. The greenback has been rising broadly for more than a month as markets are wary of the Fed starting to taper its monetary support.
“Gold is lacking a catalyst in the current growth environment and keeping investors on the sidelines. Bears are tightening its grip on precious metal while steady to weaker global equity market helped in limiting selling pressure on the safe heaven. It’s becoming a sell on rise market and we are slowly moving towards the critical support range of $1,765-$1,750,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.
The two-day meeting will start on Tuesday and a policy statement will be issued on Wednesday, followed by a news conference by Fed Chairman Jerome Powell. Investors will be looking at how the Fed responds to fast-rising prices while facing the increasing threats posed by the more contagious Delta variant of the coronavirus, the Reuters report added.
Here are gold rates across major cities:
Here are silver rates across major cities:
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First Published: IST