Gold Price Today, 28 September 2021: Gold falls on stronger US dollar; likely to trade in Rs 45500-46500 zone

Gold had been struggling after US Fed event as the net result of a more hawkish Fed has resulted in a major uptick in the yields of 10-year Treasury notes

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices fell in India on Tuesday, mirroring international trends on a stronger dollar. On Multi Commodity Exchange, gold October futures were trading Rs 88 down at 45,981 per 10 gram as against the previous close of Rs 46,069. Silver December futures fell Rs 134 or 0.22 per cent to Rs 60,500 per kg, from the previous close of Rs 60,634 per kg. Globally, yellow metal prices eased, hurt by a stronger dollar and rising U.S. Treasury yields, while investors awaited more cues from Federal Reserve officials on the central bank’s monetary policy shift, according to Reuters. Spot gold fell 0.1 per cent to $1,748.01 per ounce, while US gold futures were down 0.3 per cent to $1,747.50.

Tapan Patel, Senior Analyst (Commodities), HDFC Securities

Gold prices traded steady with COMEX Spot gold prices hovering above $1750 per ounce on Tuesday morning trade. Gold prices were stuck in a range near $1750 on mixed global cues over US FED tapering and China’s Evergrande debt crisis. The rise in US bond yields has put pressure on gold prices. The 10 year US Treasury yields rose to 1.48% on Monday. Market players were awaiting testimony from US FED chairman and US treasury secretary Jenet Yellen where comments on the economic forecast will be crucial.

We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1740 and resistance at $1770 per ounce. MCX Gold October support lies at Rs. 45800 and resistance at Rs. 46300 per 10 gram.

Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities

Gold had been struggling after the US Fed event as the net result of a more hawkish Fed has resulted in a major uptick in the yields of 10-year Treasury notes, which is also supportive of the U.S. dollar. US 10Y yield hits 1.5% for the first time since June. SPR GOLD ETF fell by 3.2 tonnes. The sentiment is weak. Gold traders’ focus this week is on U.S. government spending. Some anxiety in the market could surface late this week if it appears the U.S. government could partly shut down. 45700-45500 continues to be support for the market and we don’t expect any major upside move unless the debt ceiling is not raised. Historically we have seen that congress approves it even though it may take a day or two. So any upside in gold is not expected to sustain for longer time. Gold is expected to trade in range of 45500-46500 for next couple of days. We might see some bouts of volatility as there are major speeches by Fed officials, including the chairman as he testifies before Congress.

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

COMEX gold trades little changed near $1753/oz after a flat close in previous session. Gold is range bound as support from global growth worries and rising inflation concerns amid energy crisis is countered by firmness in US dollar and increased expectations of monetary tightening by Fed and other central banks. ETF outflows also show weaker investor interest. Gold may remain choppy as safe haven buying will be offset by Fed’s rate hike expectations

Sandeep Matta, Founder – TRADEIT Investment Advisor

Gold prices remained mostly steady with some early sign of short-covering by traders however the near-term trend is still bearish. The federal reserve will continue to remain in focus which has contained any big move in the precious metal due to its updated commentating on tapering. Gold prices are in pressure due to bond yield which are trading at three months higher and robust dollar. Gold on MCX has also closed mostly unchanged and is expected to remain range bound until it crosses and sustains above $1791/oz in US market.

Key level for GOLD AUG Contract – 46064
Buy Zone Above – 46090 for the target of 46200-46337
Sell Zone Below – 46050 for the target of 45900-45765

(The views in this story are expressed by the respective experts of the 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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