Gold and silver prices inched higher in Wednesday’s trade ahead of US Federal Reserve policy meeting. Besides, a sharp rise in coronavirus cases also pushed investors to seek safe-haven assets. On MCX, gold August futures were trading Rs 71 or 0.15 per cent higher at Rs 46,665 per 10 grams. While silver July futures were ruling at Rs 48,271 per kg, up Rs 172 or 0.36 per cent. Investors await US Fed policy statement on the state of the economy and clues on future measures. The reopening of the economies across the world in a phased manner has put some pressure on the yellow metal. In May, gold prices hit a record high of Rs 47,929 per 10 grams. “Strong rally in the equity market has taken the shine off gold but on hindsight, gold has also not been subjected to the selling pressure as seen in US Dollar though both are regarded as safe-haven,” Bhavik Patel, Senior Technical Research Analyst at Tradebulls Securities, told Financial Express Online.
He further said that if the US dollar lifts on the back of fear, then it could probably drive money into the gold market simultaneously. “We are in an uptrend in gold so people are looking to pick up gold at lower levels, Rs 46,400 on MCX is an ideal level to buy gold today with an expected target of Rs 46,600 and stop loss of Rs 46,300,” Patel added.
The Fed has already cut interest rates near zero and announced stimulus measures to fight the coronavirus pandemic. “Sentiment is likely to be positive in the bullion space in intraday today,” said Jigar Trivedi, Fundamental Research Analyst – Commodities, Anand Rathi Shares and Stock Brokers.
Spot gold was up 0.1 per cent at $1,715.43 per ounce. US gold futures also edged up 0.1 per cent to $1,723.60. Among other metals, silver gained 0.6 per cent to $17.69 an ounce, palladium climbed 1.2 per cent to $1,964.20, and platinum edged 0.1 per cent higher to $838.22.