A growing number of Fed policymakers indicated they would be open to speeding up the elimination of their bond-buying program if high inflation held and move more quickly to raise interest rates, minutes of the US central bank’s last policy meeting showed.
Gold futures on MCX were up 0.22 per cent or Rs 106 at Rs 47,544 per 10 grams. Silver futures rose 0.41 per cent or Rs 259 to Rs 63,884 per kg.
“The lack of fresh triggers may keep prices in range for the day. We expect gold prices to trade sideways to down for the day with COMEX Spot Gold support at $1,780 and resistance at $1,810 per ounce. MCX Gold December support lies at Rs 47,200 and resistance at Rs 47,800 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
In the spot market, the highest purity gold was sold at Rs 47,584 while silver was priced at Rs 62,941 on Wednesday, according to the Indian Bullion and Jewellers Association.
Trading strategy
“The government’s reported proposal to hike GST on gold jewellery to five per cent from three per cent will be a setback to the rebounding jewellery industry in India. We expect gold prices to remain weak till it crosses the level of Rs 47,700 in MCX. Buy zone is above Rs 47,700 for the target of Rs 48,000. Sell zone is below Rs 47,300 for the target of Rs 47,000,” said Ravi Singh, Vice President & Head of Research, ShareIndia.
Global markets
Spot gold rose 0.2 per cent to $1,792.05 per ounce by 0137 GMT, after slipping to its lowest since Nov. 4 on Wednesday. U.S. gold futures added 0.4 per cent to $1,791.70.
Spot silver rose 0.5 per cent to $23.64 per ounce. Platinum gained 1.2 per cent to $986.27 and palladium was up 0.7 per cent at$1,864.29.
