Gold Price Today, 21 Sep 2022- Gold rate flat on muted global cues, investors await US Fed meet decision

Gold Price Today, 21 Sep 2022: Gold rate flat on muted global cues, investors await US Fed meet decision

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate were trading flat in India on Wednesday, as prices remained steady in global markets. On Multi Commodity Exchange, gold October futures were ruling at Rs 49,216 per 10 gram, up Rs 41. Silver December futures were trading at Rs 56,684 per kg, up Rs 341 or 0.6 per cent. Globally, yellow metal lingered near recent lows as investors prepared for the likelihood of another super-sized interest rate hike from the U.S. Federal Reserve in its effort to tame soaring inflation, according to Reuters. Spot gold was flat at $1,663.73 per ounce. Bullion hovered close to $1,653.10, its lowest level in more than two years marked last week. U.S. gold futures edged 0.1% higher at $1,686.70.

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities

Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities

Gold and Silver might see some volatile action late in the day prior to the FOMC statement post 11:30 IST. We have seen historically volatility but the market has already discounted 75bps rate hikes in Sept and Nov. In the unlikely event that the Federal Reserve raises its benchmark interest rate by 1%, it would most certainly pressure gold to lower pricing. 2 Yr US Treasury yield hit nearly 4% which is keeping gold prices under check. Any relief rally is only expected tomorrow as historically this year after every rate hike, we have seen gold climbing. Despite US Treasury yield and dollar moving higher, we have not seen the same selling pressure in gold on the downside indicating that sellers have exhausted and are waiting for fresh triggers. Any breakthrough below $1650 will give bears fresh ammunition for taking gold lower till $1620 but breach above $1700 will take gold till $1725-30. Avoid carrying any overnight position and gold is expected to trade steady in the first half in range of 48900-49250.

Tapan Patel, Senior Analyst — Commodities, HDFC Securities

Gold prices traded steady on Wednesday with spot gold prices at COMEX were trading near $1664 per ounce in the morning trade. MCX Gold October futures opened marginal down near Rs. 49178 per 10 gram following global cues. Gold prices kept range bound trading as market is awaiting the US FED decision over interest rate. A rate hike of 75 bps is already discounted in the market while a larger rate hike will be a surprise. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1640 and resistance at $1680 per ounce. MCX Gold October support lies at Rs. 48800 and resistance at Rs. 49700 per 10 gram.

Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services

Gold prices inched lower as the dollar and Treasury yields firmed, and investors remained cautious ahead of a widely expected large interest rate hike by the U.S. Federal Reserve this week. Last week U.S. inflation data was reported better than expected, which raised the probability of even a 100bps rate hike, increasing the pressure on metal prices. There is 80% probability of a 75bps rate hike according to CME fed watch tool, which the market seems to have discounted for in the prices. Dollar and Yields have been witnessing significant gains since amidst this rate hike expectation, as the dollar continues to hover around its two decade high, while U.S. 10Y yields are steady near ~3.4% levels. Apart from the Fed, this week other central banks like BOE are also expected to keep tightening monetary policy in the face of surging inflation. Indicative of sentiment, holdings in the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, have dropped to their lowest since March 2020. Apart from the interest rate, focus will also be on the comments from Governor Powell and inflation & growth forecasts. Broader trend on COMEX could be in the range of $1635-1690 and on domestic front prices could hover in the range of Rs 48,850-49,500.

(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)