Gold prices fluctuated in anticipation of the U.S. Federal Reserve’s forthcoming decision on interest rates. With markets eagerly awaiting clarity on whether the Fed will pursue an aggressive rate-cutting strategy, many investors are preparing for significant shifts in the price of the precious metal.
A Global Perspective on Gold Price Movements
In India, spot gold prices have surged by an impressive 16% this year, reflecting a broader international trend, where gold prices have jumped by over 24%. This rise can be attributed to several factors, including:
- Anticipated interest rate cuts from the Federal Reserve.
- A surge in central banks’ gold purchases.
- Ongoing geopolitical uncertainties.
- Increasing gold investments through exchange-traded funds (ETFs).
The CME FedWatch tool currently shows a 65% chance of a 50-basis-point rate cut, up from 34% just a week ago. As expectations build for a deep cut, gold prices are likely to experience new highs in the coming months.
MCX Gold Performance and Predictions
On the domestic front, MCX Gold (October expiry) traded at ₹73,050 per 10 grams as of Wednesday morning, reflecting a slight dip of 0.06%. Experts have flagged the session as potentially volatile, closely tied to the U.S. Fed’s announcement.
Manoj Kumar Jain of Prithvifinmart Commodity Research shared his technical analysis for the session. Gold has support at $2,574–2,558 and resistance at $2,610–2,622 per troy ounce. Similarly, silver is expected to hold support at $30.64–30.20 with resistance at $31.40–31.84 per troy ounce.
For the Multi Commodity Exchange (MCX), Jain notes that gold’s support lies at ₹72,800–72,580, with resistance expected at ₹73,300–73,550. Silver, meanwhile, has support at ₹88,450–87,700 and resistance at ₹89,950–90,500.
Strategy for Investors: A Cautious Approach
With a turbulent market and the Fed decision looming, experts like Jain advise caution. Rahul Kalantri, VP of commodities at Mehta Equities, suggests a conservative stance, highlighting gold’s support at $2,555–2,540 and resistance at $2,590–2,612. Silver’s support is noted at $30.20–30.00, with resistance at $30.65–30.88.
Expert Advice: Wait and Watch
Jian advises investors to hold off on gold and silver trades until after the Fed meeting. With the market’s trajectory heavily dependent on the U.S. monetary policy decision, it’s essential for investors to consult certified experts and keep a close watch on emerging developments.
Stay Updated with the Latest Trends
As always, it’s crucial to do your own research and rely on up-to-date sources when making investment decisions. For more insights, visit Reuters and CME Group for the latest information on global financial markets and the Fed’s upcoming policy decisions.
