Gold was trading flat in the Indian market on September 22 amid rising uncertainties triggered by China Evergrande’s debt crisis and anticipation of policy cues from the US Federal Reserve on tapering stimulus for the world’s largest economy.
On the Multi-Commodity Exchange (MCX), October gold contracts were trading lower by 0.09 percent at Rs 46,596 for 10 grams at 0924 hours. September silver futures were higher by 0.66 percent at Rs 60,835 a kilogram.
On September 21, gold rose by Rs 231 to Rs 46,513 per 10 gram in the Mumbai retail market after three days of straight fall on a softer dollar and safe-haven appeal.
In the international market, the metal traded firm above the support level of $1,760 on risk-averse stance by investors ahead of US FOMC meeting.
Gold and silver gained on anticipation that the US Federal Reserve could delay its bond tapering programme after Chinese real estate company debt fiasco, said Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research.
“We expect both precious metals to remain volatile in today’s session ahead of the Federal Reserve meeting outcome but lower levels supports remain intact in both the precious metals,” Jain said.
“Gold has support at $1,764-1,750 per troy ounce and resistance at $1,788-1,800 per troy ounce; silver is having support at $22.20-22.00 per troy ounce and resistance at $22.88-23.00 per troy ounce.”
On MCX, gold has support at Rs 46,400-46,180 and resistance at Rs 46,800-47,055, while silver has support at Rs 59,900-59,500 and resistance at Rs 61,000-61,400.
“We suggest buying silver on dips around Rs 59,900 with a stop loss of Rs 59,400 for the target of Rs 61,200,” he said.
Abhishek Chauhan, Head of Commodity & Currency at Swastika Investmart
Gold gained ground as Evergrade debt crisis left investors jittery. The dollar index hesitated on further advance, strengthening prices of gold and silver.
On MCX, gold tested a resistance level of Rs 46,800. Above this level, it may move towards Rs 47,300. It has support at Rs 46,400. Rangebound to upside movement is expected in precious metals ahead of the Fed meeting outcome scheduled for September 22 night.
Amit Khare, AVP- Research Commodities, Ganganagar Commodities
Gold and silver were trading higher in midday US trading on September 21. There was some safe-haven demand after the previous day’s sharp selloff in the global stock markets that had traders and investors uneasy.
A dovish read on the US monetary policy by the marketplace would favour the metals market bulls, while a hawkish read would favour the metals bears.
On September 21, there was a good short covering rally in bullions at lower levels that may continue for the next few sessions.
As per technical charts, both metals are trading in oversold zone, the momentum indicator RSI also points to the same, and are creating a strong positive divergence in 4-hourly as well as daily charts. Traders should create fresh buy positions in gold and silver, traders should focus important technical levels:
October Gold closing price: Rs 46638 | Support 1-46,250 | Support 2-46,000 | Resistance 1 -47,012 and Resistance 2- 47,370.
December Silver closing price; Rs 60,439 | Support 1- 60,200 | Support 2-59,800 | Resistance 1-60,820 | Resistance 2-61,500.
Sandeep Matta, Founder at TRADEIT Investment Advisor
Gold registered double-digit gains on September 21 as investors looked for some hedge and safety amid Evergrande volatility that has triggered a broad-based selloff in worldwide equity markets.
Market participants are now eyeing the FOMC outcome, particularly the tone of commentary that will decide the fate of safe haven in the short run.
On MCX, gold closed on a positive note, turning the momentum indicators in the favour of bulls and seems to be in a much better position to receive Fed announcement post Evergrande probable bankruptcy.
Key level for gold – 46,522
Buy zone above – 46,525 for the target of 46,700-46,914
Sell zone below – 46,500 for the target of 46,305-46,150
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