Gold futures in
They were down 0.03 percent (14 rupees) to 46,624 rupees per 10 grams. On the other hand, silver futures rose 0.69 percent (420 rupees) to 60,859 rupees per kg.
Gold prices had rebounded on Tuesday on the risk of sentiment over the Chinese housing market crisis.
Speculation ahead of the US FOMC and uncertainty over China’s Evergrande debt crisis have sent mixed signals to the market driving gold buying. The dollar index and US bond yields were stable pending the outcome of the US FOMC.
Ravindra Rao, CMT, EPAT, vice president and head of commodity research at Kotak Securities, said gold trading changed little as market players moved on the sidelines ahead of the Fed’s decision. ETF also shows a lack of direction.
“Concerns about viruses, the health of the Chinese economy and geopolitical tensions are supporting prices. Gold has broken out of lows. A sustained rise can occur only if the Fed fails to meet market expectations of giving a deadline. clear for the reduction of bonds, “he added.
Silver bullion it is considered a hedge against inflation and the devaluation of the currency resulting from the generalized stimulus. An aggressive move by the Fed would diminish the attractiveness of gold.
The dollar index hit a nearly a month high, hurting the attractiveness of gold to holders of other currencies. Higher interest rates increase the opportunity cost of owning non-interest bearing gold.
A pullback in domestic prices failed to revive physical demand for gold in India last week, and jewelers gambled on the upcoming wedding and holiday season.
On the spot market, the highest purity gold was sold at Rs 46,513 per 10 grams, while silver was priced at Rs 60,200 per kg on Monday, according to the Jewelers and Bullion Association of India.
The spot price of the yellow metal has fallen by around Rs 1,000 in the past two weeks, while silver has lost about Rs 4,000 in the same period.
Sandeep Matta, founder of TRADEIT Investment Advisor, said that “gold posted double-digit gains in yesterday’s trade as investors seek hedge and safety amid Evergrande volatility, which has triggered a widespread sell-off in the markets. of world values ”.
“We expect gold prices to trade sideways to rise during the day with COMEX Spot gold support at $ 1,760 and resistance at $ 1,795 per ounce. MCX Gold support for October is at Rs 46,200 and resistance at Rs 46,200. Rs 47,000 for 10 grams, “said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was flat at $ 1,775.63 per ounce as of 0120 GMT, while US gold futures fell 0.1% to $ 1,776.30.
Silver was up 1.2% at $ 22.74 an ounce, while palladium was up 0.2% at $ 1,910.34. Platinum was stable at $ 954.28. Prices rose 4.7% on Tuesday, their biggest one-day rise since February 10.