Gold price in India rose sharply on Monday. On the Multi-Commodity Exchange (MCX), the gold futures increased 0.17 per cent to Rs 48,332 for 10 grams at 0930 hours on January 24. However, silver price witnessed a huge slump on Monday. The precious price dropped 0.22 per cent to Rs 64,665 for a kilogram on January 24.
In the international market, gold price remained flat on Monday ahead of the US Federal Reserve meeting. Spot gold price changed a little at $1,833.36 per ounce 0034 GMT while US gold futures were slightly up 0.2 per cent to $1,834.70.
The US central bank’s Federal Open Market Committee is scheduled to meet on January 25-26. Investors are keenly waiting for the US Fed’s signal on sooner-than-expected rate hike. To handle the rising inflation, the US Federal Reserve would tighten the monetary policy at a much faster pace now, according to the economics polled by the Reuters.
Gold Price Future: Know What Expert Says
“Gold prices in India have capped its downside compared to the fall in COMEX gold prices because of some relief from rupee depreciation. The Fed is the key factor to determine gold price trends as Covid-19 worries are diminishing. Gold prices traded under pressure after the Fed announced hikes in key interest rates by 2023. We expect gold to remain bullish this week. Buy Zone Near – Rs 48,000 for the target of Rs 48,300. Sell Zone Below – Rs 47,800 for the target of Rs 47,600,” said Dr Ravi Singh, vice president & head of research, ShareIndia.
“Gold and silver prices are showing some profit booking on daily technical chart, Momentum indicator RSI also indicating the same in hourly as well as daily chart, So traders are advised to book their longs and can create fresh sell near given resistance levels, Traders should focus important technical levels given below for the day: February Gold closing price Rs 48,249, Support 1 – Rs 48,140, Support 2 – Rs 48,000, Resistance 1 – Rs 48,350, Resistance 2 – Rs 48,500. March Silver closing price Rs 64,806, Support 1 – Rs 64,350, Support 2 – Rs 64,000, Resistance 1 – Rs 65,000, Resistance 2 – Rs 65,400,” said Amit khare, AVP- research commodities, Ganganagar Commodity Limited.
Market focus is now on the U.S. Federal Reserve’s meeting on Jan. 25-26, and economists polled by Reuters expect the central bank to tighten policy at a much faster pace than thought a month ago to tame persistently high inflation.
According to data from CFTC, speculators cut net longs in COMEX Gold F&O by 3,320 contracts to 84,539, while speculators raised net longs in COMEX Silver F&O by 5,937 contracts to 23,827 in the week to January 18. However, SPDR Gold Trust fund said its holdings rose about 2.8 per cent to 1008.45 tonnes on Friday from 980.86 tonnes on Thursday.
“International gold spot and futures have started flat to marginally higher this early Monday morning in Asian trade, as investors awaited the US Federal Reserve’s meeting for confirmation on its interest rate hike path. However, downside could remain capped amid safe haven appeal for the metal amid Russia-Ukraine tensions. Technically, if February COMEX Gold trades below $1834.63 levels, it could witness a bearish momentum up to the support zone at $1825.57-$1819.33 levels. A trade above could push the prices back to the resistance zone at $1840.87-1849.93 levels,” said Sriram Iyer, senior research analyst at Reliance Securities.
“Domestic gold prices could start flat this early Monday morning tracking a subdued start in the overseas. Technically, if MCX Gold February trades below 48300 level it could witness a bearish momentum up to the support zone at 48094-47938 levels. A trade above could push the prices back to the resistance zone at 48464-48678 levels,” Iyer added.
Silver Price Future
“International silver spot and futures have started flat this early Monday morning in Asian trade. Technically, if March COMEX Silver trades below $24.388 levels, it could witness a bearish momentum up to the support zone at $24.137-$23.953 levels. Resistance zone is at $24.572-24.823 levels. Domestic silver prices could start flat this early Monday morning tracking subdued overseas prices. Technically, if MCX Silver March trades below Rs 64,929 levels, it could witness a bearish momentum up to the support zone at Rs 64,496-64,187. Resistance zone is at Rs 65,238-65,671,” Iyer mentioned.
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