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Gold is trading flat in Indian markets on July 27 following the muted trend in international spot
prices, as investors turn cautious ahead of the US Federal Reserve meeting outcome.
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On the Multi-Commodity Exchange (MCX), August gold contracts were trading 0.02 percent lower at Rs
47,450 for 10 grams at 0930 hours. September silver futures were trading 0.22 percent lower at Rs 66,970
a kilogram.
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The Fed officials are likely to affirm after their two-day meeting that a strong US recovery and their
plan for an eventual policy shift both remains underway, a Reuters report said.
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Large stimulus measures tend to support gold, which is often considered a hedge against inflation and
currency debasement.
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August gold futures contract breached $1,800 a troy ounce on a daily closing basis in the international
market on July 26. August gold futures contract settled at $1,799.20 a troy ounce and September silver
futures contract settled at $25.32 a troy ounce.
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Both metals settled on a mixed note in the domestic markets. Gold and silver are showing a sideways move
ahead of the Fed meeting week, experts said.
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“Gold breaches $1,800 per troy ounce levels ahead of the FOMC meeting, but expected to hold its key
support level of $1,778 per troy ounce. Experts expect both the precious metals to remain volatile.
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“Gold has support at $1,792-1,778 per troy ounce and resistance at $1,808-1,822 per troy ounce. At MCX,
gold has support at 47,300-47,070 and resistance at 47,700-47,850; silver has support at 66,600-66,200
and resistance at 67,500-68,000 levels.
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Gold and silver traded range-bound to the downside ahead of the FOMC meeting as traders await the Fed's
clues on inflation and comments on the asset reduction program.
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The dollar index, which measures the basket of major currencies, slipped from higher levels on July 26
towards 92.60 level.
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Cryptocurrencies also gained due to sideways movement in gold. Bitcoin surged 13 percent on July 26.
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Gold has resistance at 47,800, while support is at 47,200. On July 27, any rise in prices towards
resistance levels may witness selling pressure in gold and silver as markets await the Fed meeting
outcome. Silver has support at 66,000 and resistance at 67,800.
Vishwajitha
August 23rd, 2021
