Investors are focused on the Fed’s two-day policy meeting, which begins on Tuesday, as the central bank expects it to signal that it plans to hike rates by 25 basis points in March.
Gold futures on MCX rose just 0.05% or 24 rupees to 48,588 rupees per 10 grams. Silver futures jumped 0.17% or Rs 101 to Rs 64,064 per kg.
“Concerns over rising inflation and discord between Russia and Ukraine have kept the safe-haven’s appeal intact. Investors are mostly waiting for the US Fed meeting for clues on its rate hikes. interest rates,” said Ravi Singh, vice president and head of research at ShareIndia.
Safe-haven bullion was supported by risky trading due to concerns over the discord between Russia and Ukraine. Benchmark 10-year U.S. Treasury yields fell to one-week lows on Monday, reducing the opportunity cost of holding noninterest-bearing bullion.
NATO sent reinforcements and the United States put troops on alert as tensions in Ukraine rose, while Britain said it was withdrawing personnel and dependents from its embassy in Ukraine.
Gold sold at a discount in India last week due to weak demand, and jewelers anticipated the country’s annual budget, while the upcoming Lunar New Year boosted demand in other centers Asian keys.
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 Jewelers Association.
Spot gold prices have gained over Rs 1,400 over the past fortnight, while silver has jumped over Rs 4,400 per kg over the review period.
Commercial strategy
Gold prices could post a profit after the Fed meeting, Singh added. He advised buying gold near Rs 48,600 for the Rs 48,800 target and selling below Rs 48,250 for the Rs 48,000 target.
Global Markets
Spot gold was flat at $1,841.56 an ounce at 0117 GMT. US gold futures also held steady at $1,842.90.
Spot silver fell 0.8% to $23.77 an ounce. Palladium lost 0.6% to $2,134.69 and platinum fell 0.7% to $1,019.48.
