Gold prices eased in India on September 17, tracking a muted trend in the international spot prices after the US dollar firmed. The Federal Reserve’s pledge to hold interest rates at near-zero until at least 2023 limited the losses for the metal.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading lower by 0.86 percent at Rs 51,380 per 10 gram at 0920 hours. September silver futures were trading lower by 1.4 percent at Rs 67,820 per kg.
The dollar index rose 0.1 percent against its rivals, making gold more expensive for holders of other currencies. Longer-term US treasury yields hit their highest levels this week, a Reuters report said.
We expect both the precious metals to remain volatile after the Fed meeting outcome and some corrections are expected in today’s session but geopolitical tensions and increasing coronavirus cases across the world could support prices at lower levels again,” Manoj Jain, Director (Head-Commodity & Currency Research) at Prithvi Finmart told Moneycontrol.
Experts are of the view that the yellow metal is likely to remain volatile and the immediate support is placed at Rs 51,300 on the downside. Any correction would be an opportunity to buy, they say.
On September 16, gold and silver had settled on a flattish note in the international markets the previous day. Gold ended at $19,70.50 per troy ounce while silver was at $27.48 per troy ounce.
The US Federal Reserve kept key interest rates unchanged to 0.25 percent and signalled that the rates would remain lower for a longer period till the economy comes back on track from the pandemic.
Upward revision of the economy by the Federal Reserve gave some support to the dollar index, which climbed to 93.40 levels again but the central bank’s stance is completely dovish, experts said.
“Any correction in the prices would be an opportunity to buy again at lower levels. Gold is having support at $1,955-1940 per troy ounce and resistance at $19,78-1,988 per troy ounce. On MCX, gold is having support at 51,550-51,300 and resistance at 52,055-52,220,” Jain said.