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Business News/ Markets / Commodities/  Gold, silver rate today under pressure ahead of US Fed meeting. Will gold price climb to a new peak before Diwali 2023?

Gold, silver rate today under pressure ahead of US Fed meeting. Will gold price climb to a new peak before Diwali 2023?

Gold rate today has immediate support placed at $1,980 per ounce levels whereas it is facing immediate resistance at $2,010 levels, say experts

MCX gold rate today has immediate support placed at ₹60,500 per 10 gm levels, say experts.Premium
MCX gold rate today has immediate support placed at 60,500 per 10 gm levels, say experts.

Gold rate today: Ahead of US Fed meeting today, gold price came under the sell off heat during early morning deals. Gold future contract on Multi Commodity Exchange (MCX) for December 2023 expiry opened lower at 61,117 per 10 gm levels. But, MCX gold rate bounced back and hit intraday high of 61,199 per 10 gm after hitting intraday low of 61,110 within few minutes of commodity market's opening bell today. In international market, spot gold price is oscillating around 1,992 per ounce levels.

Likewise, silver rate today opened lower on MCX at 72,492 per kg levels and went on to hit intraday low of 72,433 levels during morning deals. In international market, silver price is oscillating around $23.15 per ounce levels.

Why gold price is under pressure today?

On why gold and silver prices are under pressure today, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “Retracement in gold and silver prices today should be seen as a cool off effect as bullion prices were continuously rising last week. So, it is more a profit booking ahead of US Fed meeting rather any sign of weakness in bullions."

US Fed meeting in focus

On what market is expecting from the US Fed meeting, Anuj Gupta of HDFC Securities said, “US Fed is expected to maintain its rate pause stance in its meeting starting today. However, important part will be its commentary. Generally, US Fed don't increase intrest rate in December due to book closure. So, if the US Fed rates are not hiked in November meeting, then market is assuming that US Fed rate hike would happen in next year only. If the US Fed drops any such hint in its current FOMC meeting outcome, then we can expected sharp rebound in gold and silver prices across globe."

Expecting bounce back from support levels in gold and silver prices, Deveya Gaglani, Research Analyst - Commodities at Axis Securities said, “Gold prices have remained resilient despite a strong US dollar index. Investors flocked towards gold because of its safe-haven appeal due to geopolitical and economic tension. Tension in the Middle East has soared as Israel has started its ground operation in Gaza, due to which gold prices will continue to glitter."

Opportunity for Diwali 2023 buying?

Anuj Gupta of HDFC Securities said that gold prices have immediate support placed at $1,980 per ounce levels in international market whereas MCX gold rate has support placed at 60,500 levels.

On whether one should start Diwali 2023 buying in gold and silver, Anuj Gupta said, “Wait for the US Fed commentary. If the commentary comes in sycn with market expectations and rate hike gets extended for next week, then gold prices may touch 62,000 and 63,000 per 10 gm respectively in near term."

Will MCX gold rate climb to a new peak?

Anuj Gupta of HDFC Securities said that MCX gold rate climbed to a new peak of 61,845 per 10 gm in May 2023, which is still its existing record high. So, in case the US Fed meeting outcome comes in sync with the market expectations, then we can expect gold prices to climb to a new peak by Diwali 2023.

On outlook for silver prices, Anuj Gupta said, “Silver price has support placed at 71,000 and 70,000 per kg levels whereas on the upper side, it is facing resistance at 73,000 and 75,000 per kg 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 decision.

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Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Commodity News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
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Published: 31 Oct 2023, 10:29 AM IST
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