Gold price today: Rates decline ahead of US Fed policy outcome; what should be your strategy for bullion today?
Gold demand 8% ahead of 5-year average in July-Sept, falls short of year-ago mark on high prices The US Fed meeting outcome is the key event which can affect gold prices. If the Fed signals it does not want to raise rates from here, gold prices can see fresh interest. Gold prices react to interest rates in a complex way.
In the case of low-interest rates, the opportunity cost of holding gold is also lower, making gold more attractive. When interest rates go higher, they make other interest-bearing investments such as bonds more appealing. Also Read: US Fed preview: Rate hike or a pause? Experts weigh in MCX Gold for December 5 delivery traded 0.29 per cent lower at ₹60,764 per 10 grams around 10:15 am.
(Exciting news! Mint is now on WhatsApp Channels. Subscribe today and stay updated with the latest financial insights! Click here!) Gold prices may see some volatility in Wednesday's session ahead of the Fed outcome. Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week amid volatility in the dollar index, the ongoing Israel-Hamas war and the Fed monetary policy meeting.
He believes gold and silver may continue to hold their key support levels of $1,980 and $22.55 per troy ounce respectively. He says any corrective dips could be a buying opportunity in precious metals. "Gold has support at $1,980-1,968, while resistance at $2,008-2,022 per troy ounce.
Silver has support at $22.70-22.55, while resistance is at $23.20-23.50 per troy ounce," said Jain. "On the MCX, gold has support at ₹60,720-60,550 and resistance is at ₹61,120-61,350 while silver has support at ₹71,100-70,650 and resistance is at ₹72,200-72,850," Jain said. Jain suggests buying gold on dips around
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