Gold prices retreated from highs in futures trade on September 17, down around Rs 100 in morning trade, as investors broadly remained on the sidelines ahead of an expected rate cut from the US Federal Reserve 2-day meeting which started today.
Around 0910 hours, MCX Gold traded at Rs 38,100 per 10 grams, down Rs 80, or 0.21 percent.
Experts suggest that geopolitical tensions, weakness in rupee and expectations of Fed rate cut will continue to support bullion prices in the near future.
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Gold prices gained around 1 percent on Monday. Spot Gold retested $1500 troy ounce in the international market. Silver prices also gained around 2 percent and spot silver tested $17.80 in international market.
Safe haven buying emerged after a drone attack on Saudi Arabia oil refinery on September 14. MCX Gold prices made a high of Rs 38,215 and silver made a high of Rs 47,328 on Monday.
“Safe-haven buying emerged in Gold and Silver after the drone attack on Saudi Arabia oil refinery over the weekend. Weakness in rupee also supports prices in the domestic market as rupee weakens around 1 percent on Monday,” Manoj Kumar Jain, Director at IndiaNivesh Commodities Pvt. Limited told Moneycontrol.
“Ahead of the US Federal Reserve policy meet market remain volatile today and some profit-taking may be seen in both the precious metals. Any corrections in the prices will be an opportunity to buy again at lower levels,” he said.
Jain further added that Gold can be bought in the range of Rs 38,050-38,000 with a stop loss of Rs 37,800, and a target of Rs 38,330-38,450. Silver can be bought around Rs 46,800 with a stop loss around Rs 46,500, and a target of Rs 47,300-47,500.
Source : http://tiny.cc/mcnvcz