Fed policymakers are set to forecast that the US economy will accelerate at the quickest rate in decades in 2021, with unemployment dropping and inflation increasing, as the Covid-19 vaccine initiative ramps up and a $1.9 trillion relief package is dispersed among households.
Gold futures on MCX were up 0.06 per cent or Rs 25 at Rs 44,925 per 10 grams. Silver futures declined 0.19 per cent or Rs 126 to Rs 67,543 per kg.
“Gold is choppy as support from US stimulus and retreat in US bond yields from recent high is countered by general optimism about the US economy and continuing ETF outflows. Gold may remain choppy ahead of Fed decision tomorrow however the general bias may be on the upside amid hopes that Fed may maintain a dovish stance,” said Ravindra Rao – Head – Commodity Research – Kotak Securities.
In the spot market, gold in the national capital rose by Rs 61 to Rs 44,364 per 10 grams on Monday. Silver also gained Rs 162 to Rs 66,338 per kilogram.
Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,710 per ounce and resistance at $1,740/$1,760 per ounce. MCX Gold April futures support lies at Rs 44,500 and resistance at Rs 45,200/45,500 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold was little changed at $1,732.32 per ounce by 0108 GMT, while US gold futures fell 0.05 per cent to $1,728.20 per ounce.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2 per cent to 1,050.32 tonnes on Monday from 1,052.07 tonnes on Friday.
Silver fell 0.2 per cent to $26.22, platinum was down 0.1 per cent at $1,211.91 and palladium dropped 0.1 per cent to $2,385.23.
