Home/ Markets / Commodities/  Gold rate today trades tepid ahead of FOMC meeting. Buy or wait for more dip?

Gold rates today opened lower but soon attracted buying interest and went on to hit intraday high of 58,648 per 10 gm on Multi Commodity Exchange (MCX). However, profit booking soon triggered and gold price retreated from its intraday highs and hit intraday low of 58,505 per 10 gm levels. In international spot market, yellow metal price is trading in a tight range of $1,938 to $1,946 per ounce levels. According to commodity market experts, the precious yellow metal may remain tepid till final outcome of the FOMC meeting arrives today.

Market experts said that gold rate today has immediate support placed at $1,920 per ounce levels whereas it is facing hurdle at $1,980 and $2,010 per ounce levels in international spot market. On MCX, gold price has immediate support placed at 58,100 whereas it is facing hurdle at 59,000 per 10 gm levels. However, they advised gold investors to maintain buy on dips till FOMC meeting outcome arrives. However,, experts maintained that gold price may trade in 57,800 to 59,500 per 10 gm range ahead of FOMC meeting.

US Fed rate hike in focus

Speaking on gold price trend ahead of FOMC meeting outcome, Anuj Gupta, Vice President — Research at IIFL Securities said, "Investors are more focussed on the US Fed's statement on bank crisis in US instead of US Fed's rate hike because series of bank collapse is going to have major impact on one's portfolio. However, market is expecting not more than 25 bps US Fed rate hike. But, one should wait for the final decision and till then continue maintaining buy on dips as gold prices are in $1,920 to $1,980 levels in international market whereas it is in 58,100 to 59,000 per 10 gm range on MCX."

Important levels to watch

On why gold prices retreated from its recent record high, Nirpendra Yadav, Senior Commodity Research Analyst, Swastika Investmart said, "Gold prices retreated from a recent high because of the government intervention in the banking crisis. The safe haven rally in gold paused for the near term as the FOMC meeting outcome is to be released later in the day. Government intervention in the banking crisis may encourage Fed to continue its fight against inflation at the same pace and may put pressure on gold in the near term. However, growing pressure on the global economy amid the banking crisis and uncertainty may keep the downside limited in gold." Swastika Investmart expert said that gold rate today may remain in 57,800 to 59,500 per 10 gm range till FOMC meeting outcome arrives.

Advising gold investors to maintain buy on dips strategy, Anuj Gupta of IIFL Securities said, "One can buy gold at around 58,400 levels for intraday target of 58,950 levels maintaining stop loss at 58,100 per 10 gm levels."

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

Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Updated: 22 Mar 2023, 10:52 AM IST
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