Gold price today: Rates inch up ahead of US FOMC outcome; what should be your strategy for gold today?

The Fed is expected to raise rates by another 25 bps later today, but investors seek clarity on whether the central bank will stop the tightening campaign or will raise rates beyond July.

Gold and silver prices were modestly up on Tuesday, as caution prevailed ahead of the US Fed’s monetary policy meeting.

Experts pointed out that the US consumer confidence data was better than expected, the highest levels since July 2021. Despite upbeat US consumer confidence data, gold and silver recovered from their lows amid expectations of dovish comments from the Fed Chairman in its policy meetings.

MCX Gold for August delivery traded 0.14 per cent up at ₹59,270 per 10 grams around 11:10 am.

What should investors do today?

Gold prices may remain volatile today ahead of the US Fed interest rate decision. The yellow metal may come under pressure after a hawkish outcome, however, it may rally if Fed signs the end of rate hikes.

Rahul Kalantri, VP of Commodities of Mehta Equities expects gold and silver to remain volatile in today’s session.

“Gold has support at $1,951-1,940 while resistance is at $1,974-1,986. Silver has support at $24.42-24.28, while resistance is at $24.78-24.95. In the Indian rupee terms, gold has support at ₹58,950, ₹58,780, while resistance is at ₹59,320, ₹59,540. Silver has support at ₹74,180, ₹73,620, while resistance is at ₹74,940, ₹75,520,” said Kalantri.

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile in today’s session ahead of the FOMC meeting outcomes.

“Gold could hold its support level of $1,934 per troy ounce and silver could also hold $24 per troy ounce levels. Gold has support at $1,955-1,945, while resistance at $1,974-1,988 per troy ounce. Silver has support at $24.55-24.20, while resistance is at $25.10-25.45 per troy ounce,” said Jain.

“On MCX, gold is having support at ₹59,000-58,770 and resistance at ₹59,400-59,660 while silver is having support at ₹74,200-73,650 and resistance at ₹75,100-75,750. We suggest buying gold on dips around ₹59,000 with a stop loss of ₹58,770 for a target of ₹59,500 and also suggest buying silver on dips around ₹74,200 with a stop loss of ₹73,650 for a target of ₹75,500,” Jain said.

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Disclaimer: The views and recommendations above are those of individual analysts and broking companies, not of Mint. We advise investors to check with certified experts before taking any investment decisions.

Updated: 26 Jul 2023, 11:15 AM IST