Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Wednesday amid a muted trend in the international spot prices ahead of the US Federal Reserve policy decision later today. Silver prices traded flat.

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At 10:20 am, gold futures for October delivery rose 0.16 percent to Rs 51,850 per 10 grams as against the previous close of Rs 51,769 and opening price of Rs 51,839 on the MCX. Silver futures traded 0.02 percent lower at Rs 68,951 per kg. The prices opened at Rs 68,914 as compared to the previous close of Rs 68,967per kg.

“Gold is likely to remain volatile ahead of the US Federal Reserve policy decision. However, the momentum in the yellow metal remains positive and ‘buy on dips’ is suggested,” said Jigar Trivedi, Fundamental Research Analyst at Anand Rathi.

International gold prices held steady on Wednesday as investors awaited the outcome of the US Federal Reserve's policy meeting, hoping for details of the central bank's plans to balance interest rates against its inflation target.

Spot gold was up 0.1 percent to $1,957.45 per ounce. US gold futures were steady at $1,966.20.

“Gold may face resistance at $1,975-2,000 level while support is placed at $1,925-1,950 level. On MCX, resistance is seen at Rs 52,000-52,300 level while support is placed at Rs 51,200-51,500 level,” Trivedi added.

The Fed is expected to maintain the status quo on interest rates, however, investors will await more clarity the monetary tools the Fed may announce.

“Expectations from the Fed have increased amid a stalemate in talks for fiscal relief and economic reports suggesting an uneven recovery from the coronavirus-induced recession,” said Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking Ltd.

“As for today traders can buy gold at Rs 51,700 levels with the stop loss of Rs 51,400 levels for the target of 52,300 levels. Buy Silver at Rs 68,600 levels, with the stop loss of 68,000 levels and for the target of 69,800 levels,” Gupta said.

In the Bullion index “Bulldex”, Gupta suggests traders to buy at 16,200 with the stop loss of 16,050 and for the target of 16,600. In the international market, gold may test $2000 per ounce and silver may test $28.50 per ounce soon, he added.

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