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NEW DELHI: Gold prices were little changed on Tuesday, as investors looked for interest rate hike cues from the US Federal Reserve’s meeting.
Investors are focused on the Fed’s two-day policy meeting, which starts on Tuesday, amid expectations the central bank will signal that it planned to raise rates by 25 basis points in March.
Gold futures on MCX were up by merely 0.05 per cent or Rs 24 at Rs 48,588 per 10 grams. Silver futures jumped by 0.17 per cent or Rs 101 at Rs 64,064 per kg.
“Concern over rising inflation and Russia – Ukraine discord has kept the safe-haven appeal intact. Investors are mainly awaiting the US Fed’s meeting for clues on its interest rate hikes,” said Ravi Singh, VP and Head of Research, ShareIndia.
Safe-haven bullion was buoyed by risk-off trades over concerns of Russia-Ukraine discord. Benchmark US 10-year Treasury yields fell to one-week lows on Monday, reducing the opportunity cost of holding non-interest bearing bullion.
NATO sent reinforcements and the United States put troops on alert as Ukraine tensions rose, while Britain said it was withdrawing some staff and dependents from its embassy in Ukraine.
Gold was sold at a discount in India last week on dull demand, and jewelers looked ahead to the country’s annual budget, while the upcoming Lunar New Year spurred demand in other key Asian centers.
In the spot market, the highest purity gold was sold at Rs 48,793 per 10 grams while silver was priced at Rs 64,422 per kg on Monday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have gained over Rs 1,400 in the last fortnight, whereas silver has jumped more than Rs 4,400 per kg during the period under review.
Trading strategy
The gold prices may see some profit-booking after the Fed meeting, Singh added. He advised to buy gold near Rs 48,600 for the target of Rs 48,800 and sell below Rs 48,250 for the target of Rs 48,000.
Global markets
Spot gold was flat at $1,841.56 per ounce by 0117 GMT. US gold futures were also steady at $1,842.90.
Spot silver fell 0.8 per cent to $23.77 an ounce. Palladium shed 0.6 per cent to $2,134.69 and platinum was down 0.7 per cent to $1,019.48.