Gold prices face volatility as investors await US midterm election results
Bullion markets remain under pressure from high treasury yields and potential interest rate hikes by the Federal Reserve.
Gold and silver prices are expected to remain volatile this week as investors monitor the US midterm elections and fluctuations in crude oil prices, according to The Economic Times. In the previous session, MCX gold futures ended at Rs 1.40 lakh per 10 grams, snapping a two-day losing streak.
The market is currently focused on the US elections for signals regarding fiscal policy and market sentiment. Additionally, traders see a 73 per cent probability of the Federal Reserve raising interest rates in December, according to the CME FedWatch tool.
In international markets, spot gold rose 0.3 per cent to $3,960.80 per ounce. US gold futures for December delivery were steady at $3,970.80. Bank of America expects gold to stay below $4,000 over the next three months.
Manoj Kumar Jain of Prithvi Finmart noted that gold has support levels between $3,940 and $3,880 per troy ounce, with resistance between $4,000 and $4,044. On the MCX, gold support is identified at Rs 1,39,400-1,38,200, while resistance sits at Rs 1,41,400-1,42,000.
Manav Modi, Senior Analyst at Motilal Oswal Financial Services Ltd, stated that gold is likely to trade sideways with a downward bias. He noted that prices are currently trading below the 20-period average of Rs 140,660, confirming selling pressure.
