The futures for gold fell by 0.52 percent to Rs 48,885 per ten grams in comparison to the previous closing price of Rs 49,143 per ten gram and opening price of Rs 48,903 on the Multi Commodity Exchange. Gold prices have been trading lower on the Multi Commodity Exchange as a result of a stable US dollar index and as the decision on monetary policy was awaited by the Federal Reserve. The gold prices have only been declining as a consequence of the dollar stabilization.
There is a yield reservation in gold and silver prices ahead of the decision of monetary policy by the Federal Reserve. However, the fall of the gold prices will be further limited as a result of the concerns over the cases of coronavirus infections and the expectations of the US stimulus package. The gold prices on a global level faced a downside as developments on the US stimulus package and the decision on the US Federal Reserve had been awaited. The price at which the gold was bought and sold plunged 0.2 percent to $1846.42 per ounce. There was a rise in dollar by 0.1 percent making gold costly for the holders of other currencies. On the platform of Multi Commodity Exchange gold may find support at Rs 48,620 level while the opposition has been placed at Rs 49,180 level. The hold up of silver is seen at Rs 65,560 and has been at Rs 67,050 level.
The US Central Bank is anticipated to stand firm on its policy. Market participants will be analyzing and waiting for the comments from Federal Reserve Chairperson Jerome Powell for the condition of the state of the US economy. An uncomplicated monetary policy adds coercion on bond yields and benefits the bonds that do not yield gold.