On Wednesday, gold prices inched down on worldwide markets as investors anticipated U.S. Federal Reserve minutes and significant inflation data for cues on the timing of future interest rate hikes. spot gold was trading at $1,663.60 per ounce, down 0.1 percent from its one-week low set on Tuesday. At $1,673.30, U.S. gold futures were down 0.8 percent. silver contracts were down 1.18 percent at Rs 57,843 per kilogram and gold contracts were down 0.36 percent at Rs 50,911 for 10 grams on the Multi-Commodity Exchange (MCX).
Deveya Gaglani, Research Analyst, Axis Securities stated Comex place As a result of the dollar regaining its safe-haven appeal before the release of the Fed minutes later in the day, gold is once again trading below the $1680 mark. In the forth coming policy meeting, it is anticipated that the Fed’s position would remain aggressive. To combat the increasing inflation, they will keep raising interest rates by 75 basis points. This week’s release of U.S. inflation statistics might determine the gold trend for the entire month of October.
Nirpendra Yadav, Senior Research Analyst at Swastika Investmart told Ahead of the release of the FOMC meeting minutes, precious metals rose yesterday as the U.S. dollar index declined. Aggressive interest rate hikes are probably going to worsen the state of the world economy. The demand for haven assets rises due to recession fears, which also help to keep precious metals prices stable at current levels. Precious metals’ day trend might be upwards range-bound. Support and resistance levels for gold are Rs50,600 and Rs51,400 respectively. Rs57,300 is a support level for silver, and Rs59,500 is a resistance level.