Gold prices retreated from highs to slip below Rs 38,000 per 10 gm in the futures trade on September 18 ahead of the outcome of US Federal Reserve’s two-day meeting, where policymakers are expected to cut interest rates.
Around 1750 hours, MCX Gold traded at Rs 37,795 per 10 grams, down Rs 221, or 0.58 percent.
Experts suggest that Gold and Silver prices are likely to remain volatile ahead of the outcome of the US Fed meeting and the likely range could be Rs 37,800-38,200.
Gold traded steady in the international market on September 17 as spot Gold held on to $1500 levels, but the domestic market showed volatility due to a weak Rupee.
Gold retested Rs 37,861 in early trade on September 16 but held on to the crucial support of 37,800 and move upward towards 38,179.
“Ahead of Fed meeting today and volatility in global oil prices we expect Gold to move in a range of 37,800-38,200 band today. Fed meeting outcome will give further direction to the prices,” Manoj Kumar Jain, Director at IndiaNivesh Commodities Pvt. Limited told Moneycontrol.
“Net Gold prices are expected to move in a broader range of Rs 37,800-38,200 while Silver remains firm and show some up move in today’s session,” he said.
Silver prices showed strength in the international market. On the domestic front, prices inched closer to Rs 47,500. Jain advises ‘buy on dips’ strategy.
“We expect Silver prices remain firm and Rs 46,800 will act as a major support in the domestic market while Rs 47,500 acts as major resistance. If Prices sustain above Rs 47,500 than rally could extend towards Rs 47,800-48,000 levels. For today, Buy on dip strategy will work in silver,” he added.