Gold Price Today, 28 July 2021: Gold gains ahead of US Fed outcome; buy on dips with stoploss at Rs 47,300

Gold direction will depend on whether US Fed will scale back asset purchase program or not. Gold prices have decoupled from the TIPS (Inflation linked Treasury bonds) and we don’t expect this to continue, said an analyst

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were seen trading higher in India on Wednesday, even as global rates were flat. On Multi Commodity Exchange, gold August futures were up Rs 62 or 0.13 per cent at Rs 47,635 per 10 gram, while silver September futures jumped Rs 236 or 0.4 per cent to Rs 66,292 per kg. In the previous session, gold futures ended at Rs 47,573, and silver at Rs 66,056. Globally, yellow metal was flat on Wednesday, holding near the key psychological level of $1,800 per ounce, as investors await the US Federal Reserve’s meeting for hints on policy tapering plans. Spot gold was flat at $1,798.75 per ounce, while US gold futures fell 0.1% to $1,798.20 per ounce.

Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities

We might see some trend confirmation today after the FOMC meet. While it is fairly certain that the Federal Reserve will not fast-forward the timeline to raise their Fed funds rate, they will be discussing their current asset purchases of $120 billion monthly. Gold direction will depend on whether the US Fed will scale back asset purchase programs or not. Gold prices have decoupled from the TIPS (Inflation linked Treasury bonds) and we don’t expect this to continue. It would be a matter of time before gold bounces as it cannot fall in an environment of falling yields. 10 YR US Treasury yield has fallen from 1.366 to 1.244 in the matter of 8 trading sessions yet there is no spike in gold prices. Another reason for gold prices remaining under pressure was the US consumer confidence index came better than expected in July. We don’t expect any sharp movement before the FOMC press conference and gold is expected to trade in the range of 47300-47900. Looking at falling yields, it is better to approach gold with buy on dips strategy with stoploss of 47300

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

COMEX gold trades marginally higher near $1802/oz after a near flat close yesterday. Gold is supported by weaker US dollar and safe haven buying amid rising virus cases, uneven global economic recovery and concerns about Chinese economy. However, uncertainty ahead of the Fed decision, weaker ETF interest and relative strength in the US equity market has kept a check on the upside. Gold may remain choppy ahead of Fed decision however a sharp fall may be seen only if Fed sounds too hawkish

Sandeep Matta, Founder, TRADEIT Investment Advisor

Gold is trading almost unchanged ahead of the FOMC outcome while the market participants will keep a sharp eye on inflation and economic growth prospects. Precious metal is trading below the confluence point of $1800 and lack of optimism is clearly visible on price action. Gold on MCX is somehow managing the 47500 level on a closing basis and FOMC meeting out may enhance the volatility in today’s trade. Wobbly global equity markets and declining bond yields are also holding gold prices at current levels. Our outlook for today’s trade is neutral to bullish due to lack of over optimism from the FOMC meeting outcome, however traders should be ready for higher volatility on either side in the next few days.

Key level for GOLD AUG Contract – 47527
Buy Zone Above – 47575 for the target of 47688-47988
Sell Zone Below – 47515 for the target of 47413-47200

(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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