Gold prices fall for 4th straight day ahead of US Fed policy; down over Rs 8,700 from record high

The broad dollar weakness is not letting gold prices fall sharply but the trend is a little sluggish ahead of tomorrow’s Fed policy. Image: Reuters

Gold prices fell for the fourth straight day in India on Tuesday ahead of US Federal policy scheduled on Wednesday. MCX gold June futures were trading Rs 34 or 0.07 per cent lower at Rs 47,418 per 10 10 grams as against the previous close Rs 47,462. MCX silver May futures were ruling at Rs 68,630 per kg, down Rs 50 or 0.07 per cent. MCX silver ended at Rs 68,680 per kg in the previous session. MCX gold prices are down Rs 8,773 from a record high of Rs 56,191 touched in August last year. Globally, gold prices were little changed on Tuesday, ahead of the US Federal Reserve’s monetary policy meeting. Spot gold was steady at $1,780.86 per ounce. US gold futures were little changed at $1,780.10 per ounce.

Rahul Gupta, Head of Research, Emkay Global Financial Services

The broad dollar weakness is not letting gold prices fall sharply but the trend is a little sluggish ahead of tomorrow’s Fed policy. In our view, the Fed will not change the US interest rates, however, Jerome Powell’s press conference will be one to watch for more clarity over recent re-opening in the US economy. More hawkish-biased comments may derail gold’s upward trajectory while the opposite is true if the central bank remains dovish in its monetary outlook. The MCX gold is trading below the resistance of 48500, if prices cross and sustains above that level then doors will be open for 50000-51550. However, on downside support is located at 45500-45000 below which next support is at 43300.

Anuj Gupta, VP – Commodity and Currencies Research, IIFL Securities

For trading traders can go for buy in gold at Rs 47,300 with the stoploss of Rs 47,000 and for the target of Rs 47,800 per 10 grams. They can also buy silver at Rs 68,300 with the stoploss of Rs 67,400 and for the target of Rs 69,800. Weakness in dollar and falling bond yield support the gold and silver prices.

NS Ramaswamy, Head of Commodities, Ventura Securities Ltd.

Today, technically we expect MCX Gold June price will going to trade in a sideways movement for intraday. (47,700 to 47,080) It going to break out on either side in the coming sessions. On an hourly chart suggest that it going to take strong support at 200 hourly moving averages which come around 47,080 levels and breaking below which can expect more downside. On the other hand, Upside momentum will pick up once the price closed above the hourly channel line and 50 hourly moving average which comes to around 47,720 levels approximately

MCX SILVER prices are going to trade in range bound movement for the intraday (67,900 to 69,700). It will be going to break in either side direction. However, we expect, Price will going to face a strong resistance zone at 69,700 levels. On the downside, it will take immediate support at 200 hourly moving average which comes around 67,900 levels and breaking below which can expect more downside.

Ravindra Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities Ltd

COMEX gold trades marginally lower near $1775/oz after a 0.1% gain yesterday. Gold weakened today as the US dollar index tried to recover from the March low set in the previous session as market players positioned for a Fed decision tomorrow. Supporting gold price is rising virus cases, mixed economic data from major economies and loose monetary policy stance. However, weighing on price is lack of investor buying and general progress on the vaccination front. Gold along with US dollar and bond yields may remain choppy ahead of the Fed decision however general bias remains on the upside amid rising virus cases and hopes of loose monetary policy of major central banks.

(The views in this story are expressed by the respective experts of research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)