11 hrs ago
Gold and Silver Rise on MCX Before Fed Decision
Gold and silver prices went up in India’s futures market before an important US Federal Reserve decision.
Gold and silver are often watched when investors are uncertain about the economy.
Oil prices fell, and this helped limit gains in the US dollar and bond yields.
Lower yields can make gold more attractive to some investors.
The Federal Reserve is expected to raise interest rates by 25 basis points.
Investors are waiting to hear whether the Fed will sound strict or more flexible about future rate changes.
One analyst said gold’s chart still looks weak because it remains below important trend lines.
Another analyst said long-term investors could slowly buy gold and silver during the fall.
Traders were advised to wait for the meeting’s result before making new positions.
MCX gold October futures rose 0.57% to ₹1,51,667 per 10 grams, while silver December contracts gained 1.31% to ₹2,35,159 per kilogram around 9:10 a.m. on Wednesday, 16 September.
US gold futures for December delivery climbed 1.3% to $4,381.65 per troy ounce as oil prices, the dollar and 10-year Treasury yields declined.
The US Federal Reserve is expected to raise interest rates by 25 basis points amid inflation remaining above its 2% target for 65 consecutive months.
Analysts said the Fed’s decision and Chair Kevin Warsh’s guidance could determine whether gold faces further pressure or stages a short-covering recovery.
Technical analysts identified ₹1,49,500 as a key MCX gold support level, while another analyst advised long-term investors to consider accumulating gold and silver but urged traders to await the FOMC outcome.
- Who
- Gold and silver traders, the US Federal Reserve, and analysts Ravi Singh of Master Capital Services and Manoj Kumar Jain of Prithvifinmart Commodity Research.
- What
- Gold and silver prices rose in the MCX domestic futures market ahead of the US Federal Reserve’s policy decision.
- Where
- The move was reported in India’s MCX futures market, with related activity in international markets.
- When
- Wednesday, 16 September; prices were reported around 9:10 a.m., before the expected Fed decision later that day.
- Why
- Prices were supported by lower crude oil prices, softer US dollar and 10-year bond yields, and continued geopolitical uncertainty, while investors awaited the Fed’s interest-rate decision.
Cautious and Bearish View
Accumulation and Recovery View
Near-term gold direction
Cautious and Bearish View
Ravi Singh said MCX gold remains under pressure, trades below its 21-day and 55-day exponential moving averages, and favors a sell-on-rise strategy until it reclaims those levels.
Accumulation and Recovery View
Manoj Kumar Jain said long-term investors could accumulate gold and silver during the market fall.
Impact of the Fed decision
Cautious and Bearish View
A hawkish Fed stance could extend gold’s downside pressure, according to Singh.
Accumulation and Recovery View
A dovish signal could trigger a short-covering recovery, while Jain advised traders to wait for the FOMC outcome before taking fresh positions.
Key price scenarios
Cautious and Bearish View
A decisive break below ₹1,49,500 could accelerate gold’s decline toward ₹1,46,000.
Accumulation and Recovery View
A sustained break above ₹1,57,081 could revive momentum toward ₹1,60,000.
Key facts
- MCX gold price
- October futures rose 0.57% to ₹1,51,667 per 10 grams around 9:10 a.m.
- MCX silver price
- December contracts rose 1.31% to ₹2,35,159 per kilogram.
- International gold
- US gold futures for December delivery rose 1.3% to $4,381.65 per troy ounce.
- Expected Fed move
- The US Federal Reserve was expected to raise interest rates by 25 basis points.
- Inflation duration
- US inflation had remained above the Fed’s 2% target for 65 consecutive months.
- Gold support and resistance
- Analysts cited support levels around ₹1,50,150, ₹1,49,400 and ₹1,49,500, with resistance ranging from ₹1,51,500 to ₹1,57,081.
- Silver levels
- Silver support was identified at ₹2,30,000 and ₹2,27,700, with resistance at ₹2,34,400 and ₹2,37,000.
Quotes
Manoj Kumar Jain
Representative of Prithvifinmart Commodity Research
“The repeated rejection from higher levels indicates continued selling pressure, with ₹1,57,081 remaining the key resistance. A sustained breakout above this level could revive momentum towards ₹1,60,000, while ₹1,49,500 remains the crucial support. A decisive break below ₹1,49,500 could accelerate the decline towards ₹1,46,000. Until the price reclaims the key EMAs, sell-on-rise remains the preferred strategy.”
livemint.com
“The Fed’s rate decision and Chair Kevin Warsh’s guidance will be critical for the next move. A hawkish stance could extend the downside pressure, while any dovish signal could trigger a short-covering recovery.”
livemint.com
Sources
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