Gold and silver prices in India traded higher on Wednesday, Sept. 16, following gains in international bullion markets, as crude oil prices eased ahead of the US Federal Reserve policy announcement.
MCX gold rate was trading at Rs 1,51,752 per 10 grams, up by Rs 943, or 0.63%. Gold futures climbed as much as Rs 1,291 to hit Rs 1,52,100 per 10 grams.
Silver price for December delivery on MCX was at Rs 2,34,999 per kg, gaining by Rs 2,881, or 1.24%. It surged Rs 3,870 to reach a high of Rs 2,35,988 per kg.
The five-session movement shows a mixed trend across the two precious metals, with gold still marginally lower over the period while silver has posted a small gain.
In the international market, gold prices rose, with spot gold rate rising 0.8% to $4,328.39 per ounce, after scaling a more than one-month low on Monday. US gold futures for December delivery fell 0.9% to $4,369.50.
Market participants looked ahead to the US Federal Reserve's policy decision later today, with a rate hike largely priced in.
However, a more aggressive stance by the US Fed Chairman Kevin Warsh could put pressure on gold, as higher interest rates make non-yielding assets such as gold less attractive, while softer signals could support prices.
Investors are keeping an eye on developments in the Middle East and oil prices as well to track the effect on the prices of precious metals. Although crude oil prices eased on Wednesday after a surprise rise in US crude inventories, concerns over supply disruptions in Saudi Arabia remain.
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Gold Rate Outlook
Gold price on MCX is recovering from the key demand zone around Rs 1,49,770 – Rs 1,50,500.
“The 1-hour chart shows some buying emerging from lower levels, but the broader structure remains cautious as prices are still below the Falling Trendline, 50 MA and 200 MA. A sustained move above nearby resistance is required to strengthen the recovery,” said Ajay Kedia, Director, Kedia Advisory.
According to him, the major support for MCX gold rate lies at Rs 1,50,500 – Rs 1,49,770 zone, while resistance is seen at Rs 1,53,420 – Rs 1,54,285 level.
“The 78.6% Fibonacci level near Rs 1,51,334 is acting as an important short-term pivot. Holding above this zone can keep the recovery intact, while a break below it could bring Rs 1,50,500 and Rs 1,49,770 back into focus. On the upside, Rs 1,52,560 remains the first major hurdle,” Kedia said.
Silver Price Outlook
Silver price has been showing a recovery from the recent demand zone around Rs 2,31,000 – Rs 2,32,000 levels.
Kedia noted that on the 1-hour chart, prices have moved above the 50 MA near Rs 2,34,006, indicating short-term improvement, but the broader structure remains cautious as silver is still below the Falling Trendline and 200 MA zone near Rs 2,36,898.
Support for MCX silver price is seen at Rs 2,33,035 – Rs 2,31,000 levels, while major resistance is placed at Rs 2,39,200 – Rs 2,41,500 zone.
“The 61.8% Fibonacci level near Rs 2,35,614 is acting as an important pivot zone. Holding above this level can support further recovery towards Rs 2,36,900 – Rs 2,39,200. However, failure to sustain above the 200 MA may attract profit booking towards Rs 2,34,000 and lower support zones,” said Kedia.
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