Gold prices were flat on March 16 in the international markets, holding near a two-week low hit in the previous session, as investors refrained from making big bets ahead of a widely expected interest rate hike decision from the Federal Reserve to contain surging inflation.
At 9.28am, gold contracts shed 0.33 percent at Rs 51,392 for 10 gram on the Multi-Commodity Exchange (MCX) and silver slipped 0.59 percent at Rs 67,923 a kilogram.
Precious metal prices remained down in the previous session as the US Federal Reserve’s two-day policy meeting began on Tuesday. Gold and silver prices registered losses, although they remained supportive at lower levels because of uncertainty over the Russia-Ukraine conflict. The slump in the Chinese economy may attract investors to resume buying safe-haven assets.
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Gold has support at Rs 51,000 and resistance at Rs 52,200. Prices of the yellow metal are likely to be range-bound today as investors are waiting for Fed’s outcome scheduled later in the day, says Nirpendra Yadav, Senior Commodity Research Analyst a Swastika Investmart.
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Manoj Kumar Jain of Prithvi Finmart Commodity Research
Gold and silver prices extended falls on Tuesday ahead of the FOMC meeting outcome. Both the precious metals settled on a weaker note in the international markets. Gold April futures contract settled at $1929.70 per troy ounce with a loss of 1.59 percent and silver May futures contract settled at $25.16 per troy ounce with a loss of 0.56 percent.
Both precious metals also settled on a weaker note in the domestic markets. We expect gold and silver to remain volatile in today’s session ahead of the FOMC meeting outcome. Gold is expected to hold $1,885 per troy ounce and silver could hold $24.84 per troy ounce levels. Gold has support at $1,912-1,896 per troy ounce and resistance at $1,944-1,958 per troy ounce while silver has support at $24.84-24.55 per troy ounce and resistance at $25.55-25.80 per troy ounce.
At MCX, gold has support at Rs 51,220-51,000 and resistance at Rs 51,800-52,050 while silver has support at Rs 67,700-67,220 and resistance at Rs 68,800-69,100. We suggest buying silver on dips around Rs 67,800 with a stop-loss at Rs 67,200 on a closing basis for target of Rs 69,100.
Rahul Kalantri, VP Commodities, Mehta Equities
Gold and silver extended its fall on Tuesday amid anticipation of interest rate hike by the US Federal Reserve and heavy sell-off in crude oil. The US Federal Reserve’s policy meeting outcome will be released on Wednesday. Market is expecting 25 basis point hikes in this meeting but the Federal Reserve Chairman’s comment on the inflation and the Russia-Ukraine war will be directional for the precious metals.
Precious metals also plunged as crude oil prices slipped below $100 a barrel for the first time in one week and eased safe-haven buying of precious metals. However, disappointing US empire state manufacturing data supported precious metals at lower levels.
We expect volatility to remain in today’s session ahead of the FOMC meeting outcome. Gold has support at $1,905-1,888, while resistance at $1,940- 1,962 per troy ounce. Silver has support at $24.81-24.64, while resistance is at $25.48-25.70. In rupee terms, gold has support at Rs 51,050–50,680, while resistance is at Rs 51,950–52,365. Silver has support at Rs 67,600- 67,100 while resistance is at Rs 68,880–69,350.
Vidit Garg, Director, MyGoldKart
Gold on Tuesday touched an important support level of $1,905 on the back of traders liquidating long positions before the Fed meeting as they are expected to hike rate for curtailing of inflation. Also no new bad news from war front also motivated bears to add short. Technically, market may trade in range of $1,890 -1,940 today due to Fed meeting.
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