[ad_1]
Gold and silver prices in India today struggled forward of the US Fed determination. On MCX, gold futures rose 0.08% to ₹51,810 per 10 gram. On the opposite hand, silver futures slipped 0.07% to ₹68,921 per kg. In the earlier session, gold had edged 0.16% greater at ₹51,770 per 10 gram whereas silver had slipped 0.20%. Gold has remained directionless over final three weeks since hitting document highs of ₹56,200 final month.
“Mixed gold ETF flows also shows lack of direction in the market. Gold may remain choppy amid lack of clear cues. However general bias may be on the upside owing to increasing challenges to global economy and hopes of dovish stance of major central banks,” Kotak Securities mentioned in a observe.
In world markets, gold prices moved decrease after hitting a two-week excessive within the earlier session. Investors turned cautious forward of the US Fed coverage determination due later today whereas the US greenback was flat towards rivals.
“The US dollar index has turned choppy after hitting 4-week high last week. Market players are positioning for upcoming central bank meetings with the general expectations that central banks may maintain accommodative stance,” Kotak mentioned.
Spot gold was down 0.2% to $1,952.15 per ounce, after rising to $1,971.71 within the earlier session.
“Optimism of economic recovery continues to hit the safe haven demand and thus the price of gold. Meanwhile, hopes of fiscal stimulus measures and a weak dollar will continue to offer lower level support to the metal. However, investors may take cautious bets today ahead of the US Fed policy decision and the news conference from Chairman Jerome Powell later the day,” mentioned Hareesh V, head of commodity analysis at Geojit Financial Services.
The greenback index was flat towards its rivals. An stronger greenback makes gold costlier for holders of different currencies.
Among different treasured metals, silver dipped 0.3% to $27.09 per ounce whereas platinum dropped 1.5% to $963.38 and palladium slipped 0.9% to $2,388.29.
The US Fed will today announce its coverage determination in its first assembly since adopting a extra accommodative strategy to inflation and pledging to hold rates of interest low for longer.
Lower rates of interest lower the chance price of holding non-yielding gold whereas on the similar time the yellow metallic is seen as a hedge towards inflation.
US House of Representatives Speaker Nancy Pelosi mentioned Democrats had been open to delaying an October recess to get a take care of Republicans on a brand new coronavirus support invoice.
In India, gold prices are up about 30% up to now this 12 months, monitoring a rally in world markets. Unprecedented stimulus and decrease rates of interest have made gold among the finest asset lessons this 12 months amid the coronavirus pandemic.
Gold imports into India jumped to $3.7 billion in August as towards $1.36 billion in the identical month final 12 months as jewellers restocked forward of the festive season. (With Agency Inputs)
[ad_2]
Source hyperlink