India Gold MCX December futures trades lower on Wednesday tracking muted trend seen in the international spot prices as investors await the result of the U.S. Federal Reserve policy meeting.

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Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of gold, which pays no interest, said a Reuters report.

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On the Multi-Commodity Exchange (MCX), the December gold contracts were trading 0.93 per cent lower at Rs 47,513 per 10 grams at 0930 hours. The December silver futures were trading 0.03 per cent lower at Rs 63,202 a kilogram.

Gold and silver pull back on Tuesday ahead of the US Federal Reserve meeting outcome. Both the precious metals settled on a weaker note in the international markets.

Gold December futures contract settled at $1789.40 per troy ounce with a loss of 0.36% and silver December futures contract settled at $23.51 per troy ounce. Both the precious metals were also settled on a weaker note in the domestic markets.

Gold and silver plunged again amid strength in the dollar index ahead of the Federal Reserve meeting outcomes, suggest experts. Most analysts are of the view that the U.S. Federal Reserve will announce timing of its bond tapering and raise interest rates in this meeting.

“We expect both the precious metals to remain volatile in Wednesday’s session ahead of the Federal Reserve meeting outcome today late night and any sharp decline in the prices would be an opportunity for buying precious metals at lower levels,” Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

Gold has support at $1774-1762 per troy ounce and resistance at $1800-1812 per troy ounce; silver has support at $23.34-23.10 per troy ounce and resistance at $23.70-24.00 per troy ounce.

“At MCX, Gold has support at 47480-47250 and resistance at 47780-47920; silver has support at 62900-62500 and resistance at 63660-64100. We suggest buying silver around 63000 with a stop loss of 62500 (on a daily closing basis) for the target of 64000,” added Jain.

Technical Indicators:

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold prices could start with cuts this Wednesday morning, tracking weak overseas prices.

Technically, if MCX Gold December trades below 47700 it could test the support zones at 47516-47409 levels. Resistance zones is 47807-47991 levels.

International silver prices have started with cuts this Wednesday morning in Asian trade. Technically, if COMEX Silver December trades below $23.692 levels, it could witness a downside momentum up to the support zones at $23.245-$22.982 levels. Resistance zones is at $23.955-$24.402 levels.

Domestic silver prices could start with cuts this Wednesday morning, tracking weak overseas prices.

Technically, if MCX Silver December trades below 63691 it could test the support zones at 62604-61984 levels. Resistance zones is at 64311-65398 levels.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)