Gold and silver prices inched higher ahead of US Federal Reserve policy meeting in Wednesday’s trade. Besides that, a sharp rise in corona virus cases also pushed investors to seek safe-haven assets. On MCX, gold August futures were trading around Rs 71 or 0.15 percent higher at Rs 46,665 per 10 grams. While silver July futures were ruling at Rs 48,271 per kg, up to Rs 172 or 0.36 percent. Investors await US Fed policy statement on the state of the economy and clues on future measures as well. The re-opening of economies around the globe in a phased manner has put some pressure on the yellow metal. Gold prices hit a record high of Rs 47,929 per 10 grams In May. “Strong rally within the equity market has taken the shine off gold but on hindsight, gold has also not been subjected to the selling pressure as seen in US Dollar though both are considered safe-haven,” as Bhavik Patel, the Senior Technical Research Analyst at Tradebulls Securities, told.
He told that if the US dollar lifts on the back of fear, then it could probably drive money into the gold market consequently. “We are in an uptrend in gold and silver so people are looking to select up gold at lower levels, Rs 46,400 on MCX is a perfect level to shop for gold today with an expected target of Rs 46,600 and stop loss of Rs 46,300,” as Patel added. he Fed has already cut interest rates near zero and announced stimulus measures to fight the coronavirus pandemic. “Sentiment is probably going to be positive within the bullion space in intraday today,” told Jigar Trivedi, Fundamental Research Analyst the Commodities, Anand Rathi Shares, and Stock Brokers.
Spot gold was up 0.1 percent at $1,715.43 per ounce. US gold futures also edged up 0.1 percent to $1,723.60. Among the other metals, silver gained 0.6 percent to $17.69 an ounce, palladium climbed 1.2 percent to $1,964.20, and also platinum edged 0.1 percent higher to $838.22.