Gold and silver showed profit-taking ahead of the Fed meeting results, with gold prices falling Rs 240 per 10 grams, while silver declined Rs 860 per kilogram in the last 2 days.
Gold and silver closed on a weaker note in the international and domestic markets on Tuesday. The October gold futures contract closed at Rs 73,094 per 10 grams with a loss of 0.55% and the December silver futures contract closed at Rs 89,140 per kilogram with a loss of 0.52%.
Gold and silver rally pauses ahead of Federal Reserve meeting results. The two-day US monetary policy meeting began on Tuesday and will end on Wednesday with decisions on rate cuts.
Market participants booked profits on their long positions amid the debate over 25 or 50 basis point rate cuts at this meeting. On the other hand, the dollar index and 10-year US bond yields are showing weakness and suggesting that there will be broader rate cuts at this monetary policy meeting.
“The US Retail Sales and Core Retail Sales data released on Tuesday missed expectations but industrial production showed positive growth over the past month and supported precious metal prices. We expect gold and silver prices to remain volatile in today’s session ahead of the Fed meeting outcomes but are expected to hold their support level of $2,522 and $29.50 per troy ounce respectively on a weekly closing basis,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.
Manoj Kumar Jain Gold and Silver Range:
- On MCX, gold has support at 72,800-72,580 and resistance at 73,300-73,550.
- Silver has support at 88,450-87,700 and resistance at 89,950-90,500.
“We suggest staying away from gold and silver till the outcome of the Fed meeting,” Jain added.
(Disclaimer:The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of The Economic Times.
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