Gold Price Today 19 September: Expert advises caution to traders ahead of US Fed meeting; recommends this on MCX Gold, Silver futures

Gold Price Today 19 September 2022: Ahead of the crucial FOMC meeting of the US Federal Reserve, gold was trading weak on Monday both internationally and in the Indian markets. At 0615 am CT (4:44 pm IST), the October Gold futures were trading at USD 1661, down by 0.66 per cent from the previous closing price. On MCX, the October Gold futures were down by Rs 227 per gram or 0.46 per cent and were trading at Rs 49153.

Markets are expecting at least a 75 bps rate hike from Fed on 21 September.

“This week we have four major central banks delivering their monetary policies. These include US Federal Reserve on September 21 (expectation 75 bps hike), Bank of Japan on September 22 (unchanged), Bank of England on September 22 (expectation 50 bps hike), and Swiss National Bank on September 22 (expectation 75 bps hike). The yellow metal continues to be under pressure and is down nearly 20% from its record high of $2075 as major central bankers ratchet up the interest rates,” Praveen Singh – AVP, Fundamental currencies and Commodities analyst at Sharekhan by BNP Paribas said.

“It is generally expected that the Fed may take the rates to 4%-4.25% by the end of the year. Fed pivot may not happen any time soon as inflation remains quite elevated amid a strong job market,” he said.

He expects yellow metal to fall to fall further up to USD 1600 over a short-term period. Interim support is seen at USD 1650, while USD1675-1680 zone is a supply zone with next major resistance at USD 1700, Singh said.

Commodity expert Anuj Gupta recommends a wait and watch strategy for investors. He said that the expectations are of rate hike between 75 bps to 1 per cent. However, his own view was a lower rate hike this time around 50 bps. He said that the news of hike has been discounted ad he does not see a significant correction from here.

For intraday traders, his strategy is a Sell in October GOLD futures at Rs 49350 with a stop loss of Rs 49550 and target of Rs 48900. Gupta is Vice President (VP), Commodity and Currency Research at IIFL Securities

MCX GOLD futures are down by 2.53 per cent in this month while Silver futures are up by 6.64 per cent.

He also recommends buying in physical gold as prices are down now and a long festive season is ahead of us indicating that the prices could go up, going forward.

MCX Silver Futures: December Silver futures were down marginally (Rs 20 or 0.04 per cent)around this time and were trading at Rs 56700 per kg. 

Gupta suggests Sell at Rs 57000 with a stop loss of Rs 57600 and price target of Rs 56000.

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