Gold prices edged higher on September 24 after falling quite 1% within the previous session, helped by a subdued dollar, although Federal Reserve’s plans on reducing stimulus to the US economy kept the bullion on target for a 3rd straight week of declines.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading flat, marginally lower by 0.06 percent at Rs 46,030 for 10 grams at 0920 hours. September silver futures were lower by 0.145 percent at Rs 60,698 a kilogram.
Gold prices declined by Rs 294 to Rs 45,401 per 10 gram on September 23, amid fall in international valuable prices and rupee appreciation. Silver prices gained marginally by Rs 26 to Rs 59,609 per kilogram from Rs 59,583 per kilogram.
Gold and silver plunged on Thursday after record gains within the global equities and benchmark 10-year bond yields within the us . We expect both the valuable metals could find support at lower levels once more in today’s session, said Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research.
“Gold has support at $1740-1728 per ounce and resistance at $1762-1774 per ounce while silver has support at $22.40-22.20 per ounce and resistance at $22.88-23.20 per ounce . At MCX, gold has support at 45800-45550 and resistance at 46300-46580 while silver has support at 60300-59800 and resistance at 61100-61800 levels. we propose buying gold around 45880 with a stop loss of 45650 for the target of 46300,” he said.
The precious metal witnessed deep cut within the prices amid increasing interest of market participants in global equity markets. Gold prices are unable sustain despite looming inflation threat within the economy and should be losing the safe heaven status for the near term. Gold on MCX is additionally trading negative and bears have the general technical advantage. The outlook for valuable is negative and markets participants are going to be more happy find shorting opportunities.
The conclusion of the Federal Reserve’s FOMC meeting Wednesday afternoon saw the US financial institution make no monetary policy changes, but it did set the table for future tapering of its bond-buying program, and a rise in its key rate of interest in 2022. Gold and silver showed a negative movement on September 23. But both metals are trading at oversold zone, momentum indicator RSI also indicating an equivalent and creating a robust positive divergence in 4-hourly also as daily chart, so traders are advised to make fresh long positions in gold and silver, traders should focus important technical levels:
Gold on MCX closed on a negative note post Fomc’s meeting and statement, which indicated tapering of bond buying will start soon. Strong dollar and rising Bond Yields dented the sentiment of gold yesterday. The dollar index at its 4-week high and therefore the US 10-Year bond yeild, which rose to 1.437 mark yesterday, the very best level in 10-week, exerted downward pressure. Easing Fed and China’s Evergrande fear also impacted gold to fall further.
