Gold price in India jumped on Wednesday. On the Multi-Commodity Exchange (MCX), August gold contracts rose 0.18 per cent to Rs 47,657 for 10 grams at 0930 hours on July 28. Silver also witnessed an increase on Wednesday. The precious metal climbed 0.34 per cent to Rs 66,281 a kilogram on July 28.
Gold prices firmed on Wednesday above the key psychological level of $1,800 on a weaker dollar. Spot gold was up 0.4% at $1,806.00 per ounce, as of 0328 GMT. US gold futures rose 0.4% to $1,806.90. Investors are keenly waiting for the outcome of Federal Reserve’s policy committee which had started on Tuesday. No rate hike is anticipated, since the Fed has pledged to keep the benchmark lending rate lower for longer to support the recovery.
“In focus is the two-day meeting of the Federal Reserve’s Open Market Committee (FOMC) that began Tuesday morning and ends Wednesday afternoon with a statement. Inflation and economic growth prospects will be the hot topics traders and investors want to see the FOMC meeting address.Some market watchers are buzzing about the prospects of slower U.S./global economic growth and rising inflation, which in the past has been called stagflation. The conclusion of the meeting Wednesday afternoon, including Fed Chairman Jay Powell’s press conference, is likely to cause some market gyrations. August gold futures were last up $0.40 at $1,799.60 and September Comex silver was last down $0.738 at $24.58 an ounce," said Amit Khare, AVP — Research Commodities, Ganganagar Commodities Limited.
“Technically, gold futures bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close above solid resistance at the July high of $1,835.00. Bears’ next near-term downside price objective is pushing futures prices below solid technical support at $1,775.00. First resistance is seen at Monday’s high of $1,812.00 and then at $1,825.00. First support is seen at today’s low of $1,792.80 and then at last week’s low of $1,789.10," Khare added.