Gold Price Today: Will Fed rate cut direction boost yellow metal’s prospects? Here’s what experts say

Gold continued its range-bound trade on Wednesday ahead of the US Federal Reserve’s policy meeting outcome later today.

The MCX April gold futures were trading at Rs 65,675 per 10 grams, up by Rs 92 or 0.14% while the May Silver contract was trading at Rs 75,320 per kg around 9:30 am, higher by Rs 33 or 0.04%.

The price of the April Gold contract is now down by Rs 682 from its lifetime peak of Rs 66,356. While the yellow metal’s decline is on the back of dollar strength which has appreciated by 1.03% in the past five trading sessions, it has been able to narrow its losses from the previous week. The DXY was hovering near the 103.84 mark against a basket of six top currencies up by 0.41 points or 0.40%.

Notwithstanding a negative closing by gold and silver on the MCX on Tuesday, the bullion charts suggest a positive outlook, Amit Khare Associate Vice President at Ganganagar Commodity Limited (GCL) Broking said. Supported by momentum indicator RSI, gold finds support at Rs 65,400-Rs 65,200 while resistance at Rs 65,700- Rs 66,000, Khare said. As for May silver contract support is seen at Rs 75,000- Rs 74,400 and resistance at Rs 76,000-76,500 by this analyst

“Gold prices remained stable as the market anticipated some indication on the timing of the interest rate cuts by the Federal Reserve later today. Gold, which doesn’t earn interest, typically gains from lower interest rates. Despite fluctuations, gold stays close to its record highs, influenced by demand from China and expectations of Fed rate cuts,” Neha Qureshi, Senior Technical & Derivative Analyst at Anand Rathi Commodities & Currencies said.
On the daily chart, the April Gold contract is exhibiting a pattern of higher highs and higher lows, which suggests a bullish trend though the Relative Strength Index (RSI) is currently in the overbought territory, hinting at a potential pullback in prices, Qureshi said. With prices positioned above their 21 and 50-day Exponential Moving Averages (EMAs), the ongoing strength in yellow metal stays strong, she added.

The Anand Rathi analyst has placed resistance at Rs 66,040- Rs 66,356 while support at Rs 65,380- Rs 65,050.

The price of gold in major physical bullion markets like Delhi, Ahmedabad and other cities is Rs 65,800 per 10 grams while those of 1 kg of Silver is Rs 76,500, Gupta said.

MCX Gold and Silver ended with minor declines on Tuesday with the former settling with a downtick of Rs 7 per 10 grams or 0.01% at Rs 65,576 while the latter ending down by Rs 201 or 0.27% at Rs 75,295 per kg.

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Intraday Trading Strategy by Neha Qureshi

– Buy MCX April gold futures at Rs 65,600 with a stop loss of Rs 65,100 and a price target of Rs 66,300.

– Buy MCX May silver futures at Rs 75,300 with a stop loss of Rs 74,300 and a price target of Rs 77,300.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)