Gold Price Today: Gold to trade in a range ahead of US Fed rate announcement; experts give intraday trading strategy

Gold Price Today: Gold is expected to trade in a range-bound manner over the next two days, at least two experts have told Zee Business Web. The two-day US Federal Reserve meeting begins later today and the outcome of the Federal Open Market Committee (FOMC) meeting will be announced on Wednesday. Experts are seeing a 75 bps interest rate hike.

The price movement in gold usually goes to a pause mode just before the policy meeting and there is not much movement, Amit Sajeja, Vice President - Research, Commodity and Currency at Motilal Oswal said.

 The rally in MCX Gold futures has stretched a bit far from the lows of Rs 49703 during the last week to 50870 witnessing an 1100 point upward move. He expects some downside from the current levels till the support level of Rs 50300. He said that he sees a range bound movement till Thursday.

It is possible that some correction would come between today and tomorrow as we are already seeing some short covering, he opined.

He recommends profit booking in MCX August gold futures with resistance around Rs 50800. If there is a correction from this level till the support level, a fresh buying can be initiated, he further said. This will give some advantage to the intraday traders, he said.     

Another expert Anuj Gupta also expects MCX Gold and Silver Futures to trade in a range until the outcomes of the policy announcements are out. Howewer, his strategy on gold and silver futures is one of buy. 

He recommends a buy on August Gold futures at Rs 50400 with a stop loss of Rs 50200 and target of Rs 50800.

As for September Silver Futures, buying is recommended at Rs 54500 with a stop loss of Rs 54000 and price target of Rs 55300. 

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

Also Read: US Fed Meeting Live Updates: From expectations, impact to final announcements – all details here

On Tuesday, MCX August Gold Futures were trading at Rs 50555 per 10 gram and were up by Rs 19 or nearly flat from the Monday closing price.

Meanwhile, September Silver Futures were trading at Rs 54516 around 4:40 pm, and were up by Rs 109 or 0.20 per cent from the last closing price.

Gold prices rose on Tuesday on the back of a weaker dollar, but were stuck in a tight range as investors refrained from taking big bets ahead a possible aggressive US interest rate hike, Reuters report said.

Spot gold was up 0.3 per cent at USD 1,724.45 per ounce, as of 0311 GMT. US gold futures gained 0.3 per cent to  USD 1,723.60 per ounce.
 

The US Dollar slipped for a fourth straight session, down 0.2 per cent against its rivals, making gold less expensive for buyers holding other currencies.

(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.)