Gold Price Today 21 September 2022: Experts suggest strategy; know what to do with MCX Gold, Silver futures

Gold Price Today 21 September 2022: The Monetary Policy Announcements by the US Federal Reserve is just a few hours away. The Fed is expected to increase interest rates by 75 bps. The announcements will likley have an impact on commodity and equity markets. 

MCX October Gold futures were trading with a positive bias on Wednesday at Rs 49487 per 10 gram and were higher by Rs 312 or 0.63 per cent from the Tuesday closing price. Meanwhile the December Silver Futures were also trading positively at Rs 57205 per kg and were up by Rs 862 0r 1.5 per cent at 4:45 pm.

Commodity expert Anuj Gupta recommends a buy strategy in October Gold Futures at Rs 49300 with a stop loss of Rs 49000 and price target of Rs 49700. As for Silver Futures, buying is recommended at Rs 56700 with a stop loss of Rs 56000 and price target of Rs 57800. This is the intraday trading strategy for the remaing session for today.

Gupta is Vice President (VP), Commodity and Currency Research at IIFL Securities.

Pritam Patnaik, Head - Commodities, HNI and NRI Acquisitions, Axis Securities

"The prospects of an aggressive rate hike and expectations of continued hawkish policy stance going forward, have spooked the gold traders. Coupled with this, the dollar index trading close to its recent highs and buoyant bond yields, bullion prices have come under further price pressure. 

The US Fed is expected to announce a hike of 75 basis points, making its fifth continuous hike this year. What the market will closely watch for is the post event commentary. With Fed’s earlier proposed indicated target rates of 4.25% by 2023 , not too far off , will the Fed take an express route to these numbers of will reduce the pace of the hike, is to be seen. That in turn will provide guidance to the gold price trend. With the probability of a 100 basis point being close to only 19%, it has set the acts amongst the pigeons. Do expect extreme volatility for the day.".

(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.)