Gold prices in India traded with minor gains on Wednesday following steady international gold prices amid a weak dollar ahead of the release of the US Federal Reserve meeting minutes.
MCX gold price traded higher by ₹76, or 0.12%, at ₹62,243 per 10 grams. The price of MCX Silver has increased ₹150, or 0.21%, at ₹71,405 per kg.
International gold prices were steady, helped by a slightly weaker dollar, as investors looked forward to minutes from the US Federal Reserve’s last policy meeting later in the day for more clarity on its interest rate path, Reuters reported.
Spot gold was flat at $2,024.00 per ounce, while US gold futures were down 0.2% at $2,035.00 per ounce.
Read also: Gold hits more than one-week high as US dollar eases, Fed minutes on radar
Meanwhile, the US dollar index fell 0.1%, making greenback prices more affordable to foreign buyers.
“Gold prices received support from China dropping key mortgage interest rates. Physical gold prices in India rose to more than four-month highs as demand picked up. Gold demand in India is expected to increase to 800-900 tonnes in the calendar year year 2024. Traders are also looking forward to the release of the minutes of the last Fed FOMC meeting,” said Ajay Kedia, Director of Kedia Advisory.
According to Kedia, gold trading range for the day is ₹61,790 – 62,450. Gold can find support at ₹61,980, while it may face resistance at ₹62,310 level.
Kedia suggests buying MCX gold April contract at ₹62,000 with a stop loss of ₹61,800 and purpose of ₹62,250 – 62,450.
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The minutes of the US central bank’s January policy meeting will be released later today. According to a narrow majority of economists polled by Reuters, the Fed is likely to lower the federal funds rate in June. The biggest risk is that the first rate cut would happen later than expected rather than sooner.
Meanwhile, for silver, Kedia suggests buying at ₹70,700 with a stop loss at ₹70,200 and for the purpose of ₹71,400 – 71,900.
“Silver price may face resistance at ₹73,110, while support for silver is seen at ₹72,540 level,” Kedia said.
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Disclaimer: The opinions and recommendations made above are those of individual analysts or trading companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 21 Feb 2024, 10:14 IST