Gold price in India continued to fall on Wednesday. On the Multi-Commodity exchange, the yellow metal future dropped 0.29 per cent to Rs 51,414 at 0918 hours on March 16. Following the global cues, the silver price also tumbled on Wednesday. The precious metal price nosedived 0.55 per cent to Rs 67,947 for a kilogram on March 16.
In the international market, gold price remained flat on Wednesday. Investors were cautious ahead of the US Federal Reserve meeting scheduled on Wednesday. Analysts expected an increase in interest rates from the Federal Reserve to contain the rising inflation. Spot gold price was at $1,920.71 per ounce by 0053 GMT, after touching its lowest since March 1 at $1,906 in the last session. US gold futures plunged 0.3 per cent to $1,923.90.
For investors, Dr Ravi Singh, vice president and head of research, ShareIndia said, “Gold prices are in profit booking zone as US treasury yield eases ahead of what is expected to be the Fed’s first rate hike in three years to try to tame soaring inflation that shows no signs of slowing. The hopes for further Russia Ukraine talks has also dampened the safe haven appeal. Buy Zone Above — Rs 51,700 for the target of Rs 52,200. Sell Zone Below — Rs 51,500 for the target of Rs 51,000.
Talks between Russia and Ukraine, discussing a ceasefire and a withdrawal of Russian troops from Ukraine are ongoing, one of Ukraine’s negotiators said. Hopes of progress in peace talks between Russia and Ukraine coupled with the likelihood of a US interest rate hike dented demand for the safe-haven asset. The prospect of the first US rate hike in three years lifted US 10-year treasury yields to multi-month highs and pulled prices lower. Additionally, the recovery of the dollar also weighed on bullion, said analyst.
Gold Price Future
“International gold spot and COMEX futures have started mixed this Wednesday morning in Asian trade as investors refrained from making big bets ahead of a widely expected interest rate hike decision from the Federal Reserve to contain surging inflation. Technically, if COMEX Gold April trades below $1931.57 level it could continue its bearish momentum up to the support zone at $1906.23-$1882.77. A trade above could push prices to the resistance zone at $1955.03-$1980.37. Domestic gold prices could start flat this early Wednesday morning, tracking a subdued start in the overseas prices. Technically, if MCX Gold April trades below 51620 it could continue its bearish momentum up to the support zone at Rs 51,165-50,760. A trade above could push prices to the resistance zone at Rs 52,025-52,480,” said Sriram Iyer, senior research analyst at Reliance Securities.
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