Gold Price In India: Gold futures traded lower on Tuesday, September 21, ahead of the US Federal Reserve meet as the yellow metal mirrored global trends On the Multi Commodity Exchange (MCX), gold futures due for an October 5 delivery, were last seen trading lower by Rs 96 - or 0.21 per cent - at Rs 46,182, compared to their previous close of Rs 46,278. Silver futures due for a December 3 delivery were last up 0.04 per cent at Rs 59,586 against a previous close of Rs 59,609.
Domestic spot gold opened at Rs 46,404 per 10 grams on Tuesday, and silver at Rs 59,661 per kilogram - both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
Domestic prices of gold follow international rates. In India, gold and rupee are dependent on each other. If the value of rupee increases, against the dollar, then gold prices usually go up.
Mr Amit Pabari, MD, CR Forex:
''Domestically, equity markets also felt some tumors as major sectoral indices ended in the red with the metal index down nearly seven per cent amid the risk of a fall in demand from the world's biggest consumer increased.
The big bank- RBI must be closely watching the volatility and value of the Rupee as yesterday after making a low of 73.80, it was seen recovering back to 73.65 levels. RBI on Monday announced Rs.15,000 crore worth of purchase and sale of government securities under G SAP 2.0. This could pressurize the yield to remain lower and hence rupee could weaken on a lower carry basis. Broadly from an intervention front, the RBI is expected to stay away as market-driven forces are playing well in RBI's favor.
Overall, resumption of a fall in equities along with outflow and stronger US dollar index could be negatives for the rupee. And hence, we could see steady depreciation rather than a steep one. At last, if the USDINR pair breaches the 73.80-90 zone then we could see a move towards 74.20-74.40 levels in the near term.''
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities:
''COMEX gold trades little changed near $1765/oz after a 0.7 per cent gain yesterday. Gold has bounced back after taking support near $1740/oz. Safe haven buying amid contagion fear in China, rising inflation concerns and persisting virus concerns lent support to gold prices.
However, weighing on price is firmness in the US dollar amid Fed's monetary tightening expectations. ETF investors moved to sidelines awaiting fresh cues. Gold has stabilized after recent losses however any sharp rise is unlikely ahead of the Fed decision tomorrow.''