Gold price today: Yellow metal trades higher ahead of US Fed meeting minutes; may face resistance at ₹62,310

Gold price in India traded with minor gains on Wednesday tracking steady international gold prices amid a weak dollar ahead of the release of the US Federal Reserve policy meeting minutes.

MCX gold price was trading higher by ₹76, or 0.12%, at ₹62,243 per 10 grams. MCX Silver price was up by ₹150, or 0.21%, at ₹71,405 per kg.

International gold prices were steady, helped by a slightly weaker dollar as investors looked forward to minutes of the last US Federal Reserve policy meeting due later in the day for more clarity on its interest rate path, Reuters reported.

Spot gold was flat at $2,024.00 per ounce, while US gold futures edged 0.2% down to $2,035.00 per ounce.

Also Read: Gold hits over one-week high as US dollar eases, Fed minutes on radar

Meanwhile, the US dollar index was down 0.1%, making greenback-priced bullion more affordable to overseas buyers.

“Gold prices got support from China dropping key interest rates for mortgages. Physical gold premiums in India rose to more than four-month highs as demand picked up. The demand for gold in India is expected to increase to 800-900 tonnes in the calendar year 2024. Traders are also looking forward to the release of the minutes from the last FOMC meeting of Fed,” said Ajay Kedia, Director, Kedia Advisory.

According to Kedia, gold trading range for the day is ₹61,790 - 62,450. Gold may find support at ₹61,980, while it may face resistance at ₹62,310 level.

Kedia suggests buying MCX gold April contract at ₹62,000 with a stop loss of ₹61,800 and target of ₹62,250 - 62,450.

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The minutes of the US central bank’s January policy meeting will be released later today. According to a narrow majority of economists polled by Reuters, the Fed will likely lower the federal funds rate in June. The greater risk is that the first rate cut would occur later than forecast rather than earlier.

Meanwhile, for silver, Kedia suggests buying at ₹70,700 with a stop loss at ₹70,200 and for a target of ₹71,400 - 71,900.

“Silver price may face resistance at ₹73,110, while support for silver is seen at ₹72,540 level,” Kedia said.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.