Domestic gold prices fell by 0.26 percent amid choppy trade on Monday. MCX Gold Futures dropped by Rs 130 to Rs 49,250. Meanwhile, Silver futures gained 0.26 percent, surging to Rs 56,868 at around 10:24 am on Monday.
This comes as a weaker US dollar makes dollar-denominated commodities less expensive for holders of other currencies. As of 10:30 am on Monday, the US Dollar Index Futures traded 0.09 percent lower at 109.6.
Rahul Kalantri, VP Commodities, Mehta Equities, said, "Gold and silver prices are likely to remain volatile ahead of the Fed policy meeting and fear of global recession, as the Fed is widely expected to hike rates by 75 basis points with traders also pricing in the possibility of a 100 basis point hike."
"Gold has support at $1662-1650, while resistance is at $1686-1798. Silver has support at $19.18-18.95, while resistance is at $19.62-19.85. In INR terms, gold has support at Rs 49,020-48,810, while resistance is at Rs 49,480, 49,640. Silver has support at Rs 55,750-55,240, while resistance is at Rs 57, Rs 180–57, Rs 510," he said.
Global crude oil rates rose amid supply concerns ahead of a European Union embargo on Russian oil in December and fears of a global recession that could dampen demand. Brent crude futures and WTI futures jumped 1.3 percent each to $92.6 and $85.9 a barrel.
Meanwhile, Indian equity benchmarks
BSE Sensex and NSE Nifty50 recovered initial losses to rise about half a percent in a choppy session on Monday. Broader indices Nifty Midcap 100 and Nifty Smallcap 100 mirrored the gains in headline gauges in morning deals.
Besides this, equities in other Asian markets fell following two-month lows on Wall Street amid recession warnings from the IMF and the World Bank. Investors are bracing for a widely-expected 75 basis-point hike in key US interest rates by the Fed this week.
(Edited by : Akriti Anand)
First Published: Sept 19, 2022 12:18 PM IST
