The dollar index dropped 0.5 per cent to 91.405, making the greenback-denominated metal cheaper for non-US investors.
Gold futures on MCX were up 0.74 per cent or Rs 330 at Rs 45,170 per 10 grams. Silver futures advanced 1.19 per cent or Rs 802 to Rs 68,029 per kg.
“Gold trades higher amid correction in the US dollar index and bond yields on the back of Fed decision. Fed kept monetary policy unchanged as expected but played down risks from rising yields and indicated that interest may remain low until 2023. However, weighing on price is Fed’s upbeat growth projection and continuing ETF outflows,” said Ravindra Rao – Head – Commodity Research – Kotak Securities.
In the spot market, gold rose by Rs 60 to Rs 44,519 per 10 gram in the national capital on Wednesday supported by strength in global precious metal prices and rupee depreciation. In contrast, silver declined by Rs 200 to Rs 66,536 per kilogram.
Trading strategy
“We expect gold prices to trade sideways to up with spot gold prices at support $1,730 and resistance at $1,760 per ounce. MCX Gold April futures support lies at Rs 44,800 and resistance Rs 45,600 for the day,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Global markets
Spot gold rose 0.5 per cent to $1,752.41 per ounce by 0119 GMT, while US gold futures rose 1.3 per cent to $1,748.80 per ounce.
Silver rose 0.7 per cent to $26.51, platinum was up 0.6 per cent at $1,220.78 and palladium climbed 1.3 per cent to $2,601.85.
