Gold Price In India: Gold futures traded lower on Thursday, September 23, as the yellow metal mirrored global cues after the US Federal Reserve policy statement. On the Multi Commodity Exchange (MCX), gold futures due for an October 5 delivery, were last seen trading lower by Rs 332 - or 0.71 per cent - at Rs 46,340, compared to their previous close of Rs 46,672. Silver futures due for a December 3 delivery were last up 0.89 per cent at Rs 60,635 against a previous close of Rs 61,180.
Many of the U.S. Federal Reserve policymakers now expect to start raising interest rates next year and think that the borrowing costs should increase to at least one per cent by the end of 2023. This was a reflection of a growing consensus that a tighter policy will be needed to keep inflation in check.
Domestic spot gold opened at ₹ 46,468 per 10 grams on Thursday, and silver at ₹ 60,632 per kilogram - both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
Meanwhile, The rupee gained 10 paise to 73.77 against the dollar in opening trade today, tracking weakness of the American currency and a firm trend in domestic equities.
What analysts say:
Mr Amit Pabari, MD, CR Forex:
''Globally, the safe heaven demand edged up to 93.40 levels, being the highest in a month after Powell mentioned that continuity in economic progress could roll in for a probable announcement for a pullback of stimulus at the Fed's next meeting in November.
Also the dot plot showed nine members favoring a rate hike in 2022, moving up from seven members in the previous meeting hinting at further hawkishness. Although Fed left the interest rate unchanged for now but reiterated that taper could end by mid-2022 so they can hike rates after that.
Broad dollar strength and cautious equities likely to keep the USDINR pair under pressure. Technically, we are standing on the verge of the crucial resistance zone of 73.80-73.90. If the USDINR pair trades convincing above 73.90 then we can see it heading towards 74.20 to 74.40 levels. Overall, bias is likely to remain on the upside.''
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities:
''COMEX gold trades about one per cent lower near $1762/oz after a near flat close yesterday. Weighing on gold price is firmness in US dollar following Fed decision as central bank projections showed higher possibility of rate hike next year.
Also weighing on gold price is stability in equity markets amid easing worries about China. ETF investors also moved to sidelines. Gold may remain under pressure on Fed's rate hike projections however lack of any immediate steps towards bond tapering could limit the downside.''