Gold Rises Ahead of Fed Interest Rate Decision
Gold and silver prices are trading higher ahead of the US Federal Reserve's policy decision on interest rates. On Wednesday, gold futures (October) rose by up to 0.52% or Rs 789 to reach an intraday high of Rs 1,52,100, with analysts attributing the increase to softer crude oil prices and lower US bond yields.
The price of gold touched an intraday low of Rs 1,51,450 but remained in a bullish trend. Meanwhile, silver futures (December) surged by as much as 1.66% or Rs 3,870 to hit an intraday high of Rs 2,35,988.
The MCX gold contract opened with a mild gap-up and was capped by its 50-day exponential moving average, but recovered from the support zone of Rs 1,50,700-1,50,000. Immediate resistance for gold is seen at Rs 1,54,000-1,54,700.
In the international market, US gold futures for December delivery rose by about 1% to $4,380 per ounce, with many experts predicting a 25 basis point interest rate hike by the Federal Reserve.