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Gold Rate Today, Gold Price on 22 Sep 2022: Gold falls on strong dollar after US Fed’s rate hike, MCX support at 48800 – Gold Price Forecast, Gold Price Outlook

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate were trading weak in India on Thursday, on the back of strength in US Dollar. On Multi Commodity Exchange, gold October futures were trading flat to negative at Rs 49,439 per 10 gram, as against the previous close of Rs 49,443. Silver December futures were ruling Rs 96 or 0.2 per cent down at Rs 57,202 per kg on MCX. Globally, yellow metal prices fell 1% as the dollar rose sharply after the US Federal Reserve increased interest rates by another 75 basis points and flagged more hikes, according to Reuters. Spot gold dropped 1% to $1,656.97 per ounce, and U.S. gold futures fell 0.5% to $1,667.30.

Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services

Gold and silver prices traded higher in the first half of yesterday’s session amidst President Putin’s partial mobilization announcement although investors were cautious ahead of the Fed policy meeting which was scheduled later in the evening. Putin said he had signed a decree on partial mobilisation beginning on Wednesday, saying he was defending Russian territories and that the West wanted to destroy the country. Any escalation in this could further support safe haven assets. Gold price fell once again after testing the level of $1680 as the Fed for the third time this year raised its target interest rate by 75bps and signalled more increases. Dollar index rose by more than 1%, marking the level of 111.70, U.S. 2Yr Yield ramp to higher level since 2007 and U.S. 10Yr Yield is hovering near the highs of 2011. Broader trend on COMEX could be in the range of $1635-1690 and on domestic front prices could hover in the range of Rs 49,000- 49,750

Tapan Patel, Senior Analyst — Commodities, HDFC Securities

Gold prices traded lower on Thursday with COMEX Spot gold prices were trading 0.87% down near $1660 in the morning trade. MCX Gold October futures opened lower near Rs. 49330 per 10 gram following weak global cues. Gold prices decline post US FOMC rate decision and stronger dollar. The US FED hiked key interest rates by 75 bps, in line with market expectations. However, the more hawkish comments from Fed chair pushed dollar index higher denting demand for gold. We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1640 and resistance at $1676 per ounce. MCX Gold October support lies at Rs. 48800 and resistance at Rs. 49500 per 10 gram.

Also read: Rupee hits lifetime low on strong dollar, risk aversion in equities after another US Fed jumbo rate hike

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

COMEX gold trades modestly lower near $1668/oz weighed down by firmness in the US dollar post Fed decision. The US dollar index jumped to a fresh 2002 high as the US central bank projected the possibility of another 0.75% hike this year and no cut in interest rate until 2024. The US dollar is also supported by safe haven buying and no major change in monetary policy stance of other central banks. The persistent strength in the US dollar may continue to weigh on gold however Fed’s move was well expected so market reaction may subside.

Abhishek Chauhan, VP — Commodities & Currencies, Mandot Securities 

US interest rate hike and hawkish message from the Federal Reserve boosted the dollar and weighed heavily on metal markets. Dollar index made a high of 111.445(+1.107) Metal Prices witnessed some selling pressure pre and post FED decision. Gold has support at $1660-1650, while resistance is placed at $1690-1700.Silver at COMEX has support at $19.00-19.10, while resistance is at $19.90-20.00. In rupee terms gold at MCX has support at Rs 49050-48930, while resistance is at Rs 49,600-49,660. Silver has support at Rs 56100-56300, while resistance is at Rs 57600–57800.

Also read: Nifty must hold 17667 for upmove towards 18000; buy these stocks to pocket short-term gains

(The views in this story are expressed by the respective experts of the 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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