NEW DELHI: Gold prices were trading little changed on Tuesday, holding recovery gains of the previous session. Investors adopted a risk-averse stance ahead of the US Federal Reserve’s policy meeting.
Gold futures on MCX were marginally down 0.16 per cent, or Rs 73, at Rs 46,205 per 10 gram. Silver futures were flat, down merely 0.01 per cent, or Rs 3, at Rs 59,606 per kg.
Gold prices traded steady in morning trade. The yellow metal recovered, supported by China’s real estate crisis with the fall of giant Evergrande.
Also, the two-day US FOMC meeting will start today and market players will await any comments from Fed officials to gauge tapering clues.
Bullion is considered as a hedge against inflation and currency debasement likely resulting from the widespread stimulus. A hawkish move by the Fed would diminish gold’s appeal.
The dollar index hit a near one-month high, hurting gold’s appeal for holders of other currencies. Higher interest rates raise the opportunity cost of holding non-interest bearing gold.
Sandeep Matta, Founder, TRADEIT Investment Advisor, said gold closed moderately high amid selloff in global equity markets on account of Evergrande crisis.
A pullback in domestic prices failed to revive physical gold demand in India last week, with jewellers banking on the upcoming wedding and festive season.
In the spot market, highest purity gold was sold at Rs 46,282 per 10 gram while silver was priced at Rs 59,714 per kg on Monday, according to the Indian Bullion and Jewellers Association.
The spot price of the yellow metal have decline about Rs 1,250 in the last couple of weeks, whereas silver has shed more than Rs 5,200 in the same period.
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,750 and resistance at $1,775 per ounce. MCX Gold October support lies at Rs 45,900 and resistance at Rs 46,700 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was steady at $1,763.60 per ounce, as of 0123 GMT. US gold futures were flat at $1,764.40. Silver edged up 0.1% to $22.26 per ounce, having hit a more than nine-month low of $22.01 in the previous session.
Palladium climbed 0.6% to $1,896.30 after slumping to its lowest level since June 2020 on Monday. Platinum rose 0.5% to $915.05, having touched a 10-month low on Monday.