News

Gold price today: Gold rate declined on the MCX in early deals on Wednesday, March 18, ahead of the US Federal Reserve's monetary policy decision, while geopolitical risks and concerns over a spike in inflation capped losses for the yellow metal.

MCX gold April futures were 0.21% down at ₹1,55,662 per 10 grams around 9:15 am, while MCX silver May futures were 0.76% down at ₹2,51,200 per kg at that time.

Gold and silver prices have been volatile lately amid the US-Iran war and volatility in crude oil prices.

The US Federal Open Market Committee (FOMC) is widely expected to keep benchmark interest rates unchanged on March 18, considering the increased risk of a spike in inflation due to a sharp jump in crude oil prices driven by the US-Iran war.

Markets have largely priced in a rate pause, so a status quo outcome may have limited impact. However, a hawkish tone from Chair Jerome Powell, along with lower growth forecasts and higher inflation projections, could weigh on sentiment.

"Gold dipped as investors try to discount the impact of rising crude oil prices on inflation ahead of the US Federal Reserve’s monetary policy decision. With the Fed widely expected to leave interest rates unchanged in March, markets will closely examine the central bank’s outlook on rising energy prices and a cooling labour market," Jigar Trivedi, Senior Research Analyst at IndusInd Securities, observed.

Meanwhile, the war in the Middle East continues with full intensity. As reported by Associated Press, quoting Iranian state media, Israel’s military carried out an overnight strike in Tehran on 16 March, killing Iran's National Security Chief Ali Larijani. Brigadier General Gholam Reza Soleimani, head of Iran’s Basij paramilitary forces, was also killed in the attack.

Tehran has also intensified its attacks on energy infrastructure across the Persian Gulf. The Strait of Hormuz, through which about 20% of the world's oil shipments take place, remains largely shut, according to media reports.

Trivedi expects MCX gold April futures to trade with a bearish undertone to ₹1,55,000 per 10 grams during the session.

According to Manoj Kumar Jain of Prithvifinmart Commodity Research, MCX gold has support at ₹1,54,800 and ₹1,53,500 and resistance at ₹1,57,200 and ₹1,58,600, while silver has support at ₹2,50,000 and ₹2,46,600 and resistance is at ₹2,57,700 and ₹2,61,600.

For international gold prices, Jain sees support at $4,964 and $4,920, while resistance may be at $5,055 and $5,084 per troy ounce, and silver has support at $78 and $74.40, while resistance may be at $82.80 and $86.40 per troy ounce in today’s session.

"We suggest buying gold around ₹1,55,000 with a stop loss of ₹1,53,800 for the target of ₹1,57,400 and buying silver around ₹2,48,800 with a stop loss below ₹2,45,500 for the target of ₹2,55,500 and ₹2,58,000," said Jain.

Read all market-related news here

stories by Nishant Kumar

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.Nishant is a market reporter at Mint, where he holds the official designation of Principal Correspondent – Markets. He has been closely tracking the I...

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Download the Mint app and read premium stories