Gold prices in India rose on Wednesday and this increase follows gains in international gold prices. The rise in gold rate today comes ahead of the US Federal Reserve’s interest rate decision and growing tensions in the Middle East.
On the Multi Commodity Exchange (MCX) the gold rate today went up by ₹300 or 0.43% reaching ₹69,478 per 10 grams. The silver price also saw an increase,going up by ₹586 or 0.69% to ₹83,227 per kilogram.
In the global commodity market spot gold increased by 0.4% therefore reaching the price of $2,416.79 per ounce. This creates nearly 4% gain for the month. US gold futures also rose by 0.5% to $2,414.80.
Market View
Rahul Kalantri who is VP Commodities at Mehta Equities Ltd said that market view was mixed. A drop in US Treasury bond yields and a weaker dollar have boosted the gold rate today. Traders are waiting for the Federal Reserve’s monetary policy decision on Wednesday and the investors are also watching the ISM Manufacturing PMI and the Nonfarm Payrolls report for July.
Tensions in the Middle East have escalated. The killing of Hamas leader Ismail Haniyeh by Israel has increased demand for gold as a safe-haven asset. This has further supported the rise in the gold rate today.
US Federal Reserve Decision
Investors are waiting for the US Fed’s fifth interest rate decision of 2024. This follows a two-day Federal Open Market Committee (FOMC) meeting. Wall Street expects the Fed to keep interest rates between 5.25% and 5.50%. Policymakers may initiate the interest rate cut in September. Gold often acts as a hedge against geopolitical and economic risks as it also performs well in a low-interest-rate environment.
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Technical Analysis
Kalantri provided technical insights by saying that gold has support at $2,392 to $2,378 and resistance at $2,420 to $2,438. Silver has support at $28.05 to $27.80 and resistance at $28.55 to $28.74. In Indian Rupees gold has support at ₹68,310 to ₹68,050 and resistance at ₹68,830 to ₹68,980. Silver has support at ₹81,850 to ₹81,180 and resistance at ₹82,290 to ₹82,800.
Ajay Kedia who is the Director of Kedia Advisory noted that the gold rate today is showing a positive trend on the hourly chart. Prices are trading above the 50-period moving average. This indicates bullish momentum suggesting that buyers are in control. Traders might see this as a chance to enter long positions taking advantage of the ongoing strength.
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