Gold price today: Rates drop on profit booking ahead of US Fed policy outcome; experts highlight key MCX levels to watch

Gold price today: Rates of gold and silver declined on the MCX on Wednesday (September 17) morning on profit booking ahead of the US Federal Reserve’s monetary policy decision. MCX Gold October futures traded 0.41 per cent down at ₹1,09,705 per 10 grams around 10:00 am, while MCX Silver December futures were 1.18 per cent down at ₹1,27,304 per kg at that time.

The dollar’s rise against its peers also weighed on gold prices. The dollar index rose by over 0.10 per cent, making the yellow metal costlier in other currencies.

The US Fed is expected to cut rates by 25 bps later today amid a cooling jobs market and sticky inflation. Experts believe the central bank may overall go for a 75-100 bps rate cut this cycle, which could boost gold prices.

Gold prices have surged more than 40 per cent this year, supported by strong central bank demand, safe-haven inflows, and a shift away from the weakening US dollar.

According to Reuters, the holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.32% to 979.95 metric tons on Tuesday, from 976.80 tons on Monday.

Experts expect gold and silver prices to remain volatile this week due to the dollar index’s volatility, US-India trade deal updates, and the FOMC policy decision.

Experts highlight key MCX levels to watch

According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $3,700-3,674, while resistance is at $3740-3764 per troy ounce, and silver has support at $42.60-42.20, while resistance is at $43.30-43.55 per troy ounce in today’s session.

MCX Gold, as per Jain, has support at ₹1,09,720-1,09,300 and resistance at ₹1,10,666-1,11,000, while silver has support at ₹1,27,700-1,26,650 and resistance at ₹1,30,000-1,31,200.

“We suggest avoiding fresh positions in gold and silver ahead of the FOMC meeting outcomes, and traders can also book profits once in the existing long positions. For long-term investors no need to worry as long-term bullish trend is intact for both precious metals,” said Jain.

According to Jigar Trivedi, Senior Research Analyst at Reliance Securities, Comex Gold has a good support near $3660/oz. On the other hand, MCX Gold October futures may drop to ₹1,09,300 per 10 grams.

Rahul Kalantri, VP of commodities at Mehta Equities, said gold has support at $3,651-3,630 and resistance at $3,700-3,720. Silver has support at $41.75-41.50 and resistance at $42.65-43.00.

In INR, Kalantri said gold has support at ₹1,09,540-1,09,240 while resistance is at ₹1,10,550-1,11,000. Silver has support at ₹1,27,550-1,26,750 while resistance at ₹1,29,450, 1,30,150.

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.