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Gold Price Today, 27 July 2021: Gold under pressure ahead of US Fed meet; buy on dips for Rs 48,500 target

In MCX, gold has support around 47300 and then 46800

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading lower in India on Tuesday, as global rates remained steady ahead of US Federal Reserve meeting. On Multi Commodity Exchange, gold August futures were trading Rs 11 down at Rs 47,450 per 10 gram, as against the previous close of Rs 47,461. Silver September futures were ruling Rs 102 down at Rs 67,019 per kg. In the previous session, silver futures ended trade at Rs 67,121 per kg. Globally, yellow prices were steady on Tuesday, pinned below the key $1,800 per-ounce level, as investors turned cautious ahead of this week’s US Federal Reserve meeting outcome for clues on when the central bank might rein in its easy monetary policies. Spot gold was flat at $1,798.61 per ounce. US gold futures fell 0.1% to $1,797.80 per ounce.

Rahul Gupta, Head of Research-Currency, Emkay Global Financial Services

Overall, the focus is on Fed policy decision for further clues on the central bank’s next move on stimulus and US economic outlook. The gold traders may remain reluctant to take a new big position ahead of the Fed, as it could alter the trader’s sentiment. Ahead of the Fed, dollar index is subdued, cheering the gold bulls. Any dovish hint, will be positive for gold. MCX Gold prices gave up its intraday gains after hitting a high of 47784 levels yesterday and the counter closed with a marginal loss. Prices need to trade above 47650 levels today to see a retest of 47800/47955 levels. Intraday bounce will face resistance until then. Weakness below 47400 levels on a consistent basis will open targets of 47265/47045 levels for the counter. For short term, 46900 is the crucial support, above which every dip is buying opportunity for a target of 48000-48500. If prices drop below 46900, strong support lies around 46500-46300.

Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities

Gold is stuck at $1800 as market participants are waiting for comment from US Fed Powell this week. The trigger for gold would be the topic of tapering and now with growing concern that the US economy will slow in the second half of the year, tapering might not be as urgent as thought last month. If the US Fed gives no hint about tapering then the US dollar will weaken and ultimately will benefit gold. Hedge funds have covered their short positions, helping the market to bounce from $1782. Hedge funds though have also reduced their long positions as gold is stuck around $1800 and so they are not sticking their neck out on long positions either. Right now gold is a market that is looking for its next driver. Until the trend is clear, nobody is going to allocate much capital into the precious metals and that is why gold is stuck in limbo. In MCX, gold has support around 47300 and then 46800. Resistance comes around 47750-47800 and trend is neutral with no clear direction. Outcome of US Fed meet will give clear direction in domestic market so for now it is wait and watch.

NS Ramaswamy, Head of Commodities, Ventura Securities

We expect the MCX Gold Aug prices to trade with negative bias. Immediate strong support is seen at 47,300 level on the daily chart. Breaking below this level, we may see prices heading lower towards 47,000 level. Prices are facing resistance at 100 EMA level on daily chart which is now seen around 47,700 level. As long as prices trade below this level on closing basis, we may see prices heading lower. MCX SILVER Sep prices are also likely to trade with negative bias for the day. On daily and weekly charts, prices are trading below the key averages. The immediate resistance is seen at 68,500 level. As long as prices trade below this level on closing basis, we may see prices heading lower towards 66,000 level.

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

COMEX gold trades marginally lower near $1796/oz after a 0.1% decline yesterday. Gold is pressurized by continued strength in the US equity market, uncertainty about Fed’s monetary policy and continuing ETF outflows. However, supporting prices are rising virus cases, disappointing economic data, concerns about Chinese economy and increased US-China tensions and a jump in Chinese imports. Gold may witness choppy trade amid positioning ahead of Fed decision however global growth worries and virus concerns may keep price near $1800/oz.

(The views in this story are expressed by the respective experts of research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)

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