Gold Price Today: Yellow metal raises post US Fed meeting; Silver up over 1%

India Gold MCX February futures were trading above 48,300 per 10 gm on Thursday, tracking positive trend seen in the international spot prices which rose on soft dollar post the US Federal Reserve meeting.

On the Multi-Commodity Exchange (MCX), the February gold contracts were trading 0.50 per cent higher at Rs 48,327 per 10 grams at 0915 hours. The March Silver futures were trading 1.8 per cent higher at Rs 61,329 a kilogram.

The dollar index moved lower from a three-week high hit in the previous session as the hawkish stance of US Fed was largely priced in, suggest experts. The focus now shifts to other central bank meetings.

The European Central Bank (ECB), the Bank of England (BOE), as well as the Swiss National Bank and Norges Bank, will hold policy meetings later on Thursday, said a Reuters report.

“COMEX gold trades about 1% higher near $1783/oz as US dollar index weakened in reaction to Fed’s monetary policy decision. Fed took a hawkish stance to control inflation however market reaction was subdued as the move was well anticipated and as Fed maintained an open-ended approach amid persisting risks to the economy from virus spread,” Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities, said.

“Gold has bounced back after taking support near $1750/oz and as market players took Fed decision in stride however monetary tightening tilt of major central banks is negative for gold and may keep pressure on prices,” he said.

Gold and silver slipped again amid double tapering and three potential rate hikes in 2022 by the U.S. Federal Reserves. Both the precious metals settled on a weaker note in the international markets.

Gold February futures contract settled at $1764.50 per troy ounce and silver March futures contract were settled at $21.55 per troy ounce. Due to weakness in the rupee both the precious metals were settled on mixed note in the domestic markets.

Technical Indicators:

Expert: Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research, said.

We expect gold and silver prices could show dead cat bounce after FOMC meeting outcomes and gold could test $1800 per troy ounce again.

Gold has support at $1752-1738 per troy ounce and resistance at $1778-1792 per troy ounce; silver has support at $21.40-21.14 per troy ounce and resistance at $21.84-22.10 per troy ounce.

At MCX, Gold has support at 47880-47750 and resistance at 48220-48380; silver has support at 59800-59500 and resistance at 60700-61100. We suggest buying gold above 48100 with a stop loss of 47880 for the target of 48400 and silver above 60300 with a stop loss of 59800 for the target of 61100.

Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities

Domestic gold prices could start higher this Thursday, tracking a positive start in the overseas prices.

Technically, MCX Gold February resistance zone is at 48235-48380 levels. Support zone is at 47945-47800 levels.

International spot silver prices have started with small gains this early Thursday morning in Asian trade, tracking the weakness of the Greenback.

Technically, COMEX Silver March support zone is at $21.260-$20.975 levels. Resistance zone is at $22.415-$22.700 levels.

Domestic silver prices could start with gains this Thursday morning, tracking a positive start in the overseas prices.

Technically, MCX Silver March support zone is to 59845-59480 levels. Resistance zone is at 60780-61350 levels 

Expert: Amit Khare, AVP- Research Commodities, Ganganagar Commodity Limited

Short-term investors are advised to create fresh longs for in small dips near given support levels, and traders should focus on important technical levels given below for the day:

February Gold closing price 48087, Support 1 - 48050, Support 2 - 47900,  Resistance 1 - 48350, Resistance 2 - 48500.

March Silver closing price 60208, Support 1 - 60000, Support 2 - 59500, Resistance 1 - 61000, Resistance 2 - 62100.

(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.)