Gold Prices Today: Yellow metal may struggle on Fed's aggressive stance, US inflation data awaited

In the international market, gold bounced back after taking support near $1,700 but may struggle with Fed’s continuing emphasis on aggressive tightening, says Ravindra Rao of Kotak Securities.

Gold was trading a tad lower in the Indian market on September 12 even as prices ticked higher in the international markets as the dollar hovered near recent lows, with investors' focus on a key US inflation reading that could influence the size of the Federal Reserve's next interest-rate hike.

At 9.57 am, gold contracts were trading 0.2 percent lower on the Multi-Commodity Exchange (MCX) at Rs 50,427 for 10 grams and silver added 0.3 percent at Rs 55,213 a kilogram.

In the international market, spot gold rose 0.1 percent to $1,717.17 an ounce. US gold futures were flat at $1,728.70.

Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

Comex gold was trading marginally lower near $1,725 a troy ounce as support from a weaker dollar, China’s virus concerns and Europe’s energy crisis was countered by the monetary tightening stance of the US Fed and other central banks, continuing ETF outflows and concerns about Chinese consumer demand.

Gold once again bounced back after taking support near $1,700 but may struggle with Fed’s continuing emphasis on aggressive tightening.

Rahul Kalantri, VP Commodities, Mehta Equities

Gold and silver began the week on a firm note amid easing inflation fears after profit-taking in crude oil. Despite gold falling sharply to touch 1,710 on September 9 amid a rebound in yields and a stabilising dollar, the bullion managed to post its first weekly gains in the last four weeks.

Gold has support at $1,716-1,702, while resistance is at $1,735-1,744. Silver has support at $18.45-18.28, while resistance is at $18.95-19.15.

In rupee terms, gold has support at Rs 50,270–49,980, while resistance is at Rs 50,780–50,940. Silver has support at Rs 54,550-54,120, while resistance is at Rs 55,780–56,110.

Ravi Singh, Vice President and Head of Research, ShareIndia

Gold may gain some strength after US treasury secretary Janet Yellen said the US inflation reading for August was likely to show a decline on weaker gas prices.

She also said that the US was reviewing tariffs on Chinese goods and some of the tariffs could be rolled back. These factors led to a fall in the dollar which will induce buying in gold prices. The anticipation of lower US CPI numbers may give more bidding to the safe haven.

Buy zone above Rs 50,700 for the target of Rs 51,000

Sell zone below Rs 50,300 for the target of Rs 50,100

Amit Khare, AVP- Research Commodities, Ganganagar Commodity

As per the technical chart, bullions are making bottom and charts are showing some strength. The momentum indicator RSI is also indicating the same. So, traders can make fresh buy positions near given support and should book near given resistance levels.

October gold closing price: Rs 50529, support 1: Rs 50,300, support 2: Rs 50,000, resistance 1: Rs 50,600 and resistance 2: Rs 50,750.

December silver closing price: Rs 55050, support 1: Rs 54,600, support 2: Rs 54,000, resistance 1: Rs 55,300 and resistance 2: Rs 55,800.

Tapan Patel, Senior Analyst (Commodities), HDFC Securities

Gold prices held steady on September 12, with spot gold at Comex trading near $1,714 an ounce in the morning trade. A weaker dollar capped the downside in the yellow metal while traders and investors waited key US CPI data to be released on September 13.

We expect gold prices to trade sideways to down for the day, with COMEX spot gold support at $1,700 and resistance at $1,730 per ounce.

MCX October gold support lies at Rs 50,200 and resistance at Rs 50,800 per 10 grams. 

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