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Gold prices fall ahead of US Fed meeting Is this deal an opportunity for buyers?

 


Gold Price Today: Commodity experts have predicted limited volatility in the price of the yellow metal till the outcome of the US Fed meeting is made public.

• Gold rates today mainly driven by speculations of US Fed meeting, feel experts

Today, gold prices are going through a period of profit-booking in the domestic and international market. In the past week, gold rates on MCX (Multi Commodity Exchange) fell by Rs 507 per 10 gram or 1 per cent in Friday's session to end at 50,230, while spot gold fell 1.07 per cent to USD 1,644 an ounce level. But closed.

According to commodity market experts, a rebound in the dollar index after higher-than-expected US economic data for the third quarter has fueled speculation that the US Fed may change its stance on interest rate hikes. This expectation of a US Fed rate hike weighed on the yellow metal in the weekend session and helped the dollar index rebound from its one-month low. He said that the current support base for spot gold is at $1,630, while strong support is placed at $1,600 an ounce level, while on MCX, gold has a strong support base around ₹49,700 to ₹49,800 level while it It is facing resistance near ₹51,200 level.

Commodity market experts further said that the gold price today is mainly driven by global indicators and the outcome of the US Fed meeting will be the major trigger for the price of the precious metal. He predicted limited volatility in the yellow metal's prices until the results of the US Fed meeting are made public.

US Fed meeting

Speaking on the triggers that determine the gold rates today, Anuj Gupta, Vice President - Research at IIFL Securities said, "Gold price in the range of $1630 to $1,685 till the outcome of the US Fed meeting next week. Trade is expected to go public. After higher than expected third quarter US economic data, the dollar index has once again bounced back, leading to the fall in gold rates, said Anuj Gupta of IIFL Securities. Gold rates on MCX are expected to remain in the range of Rs 49,700 to Rs 51,200 till the results of the US Fed meeting on rate hikes are declared.

Dollar Index Rebound

Due to the fall in gold prices today, Sugandha Sachdeva, Vice President, Commodity and Currency Research at Religare Broking, said, "The US economy rebounded more than expected during the third quarter, which again boosted the dollar index from a month to a week. Gold prices fell further in late 2014. The US economy accelerated at a 2.6 per cent annualized rate from July-September amid a booming job market and against a backdrop of broader inflationary pressures and bullishness. Rates hiked by the US Fed motion."

strategy for gold investors

Suggesting gold investors to keep an eye on the outcome of the US Fed meeting, Religare Broking's Sugandha Sachdeva said, "All eyes will now be on the US Fed policy meeting to be held next week, where the market has already moved up by 0.75 percentage points. Investors, however, look for signs of a softer policy stance and a smaller rate hike at the Fed's December meeting. Gold prices will also take cues from the crucial US jobs report for October, which is lined up next week. "

For short term high risk traders, Anuj Gupta of IIFL Securities said one can buy gold for Rs 50,900 per 10 grams while maintaining stop loss at 50,900 level at current levels.

Gold Price Today: Pivot Levels You Need to Know

Religare expert said gold prices may struggle for a while but may find support near Rs 49,700 to Rs 49,800 per 10 grams area and any downside towards the said support can be seen as buying opportunities in the coming days. can be seen in. At higher levels, the level of ₹51,050 per 10 grams will restrict the rally and only a concrete breach of it can propel the yellow metal further.

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