November 1, 2023

New Delhi, India

Gold Price Recovers Ahead of Fed Meeting

The gold market saw a fluctuating trend this week, recovering from its recent dip to a weekly low amidst significant market factors.

Gold Price Movement Amidst Market Factors

The price of gold experienced a dip earlier in the week, touching a weekly low as concerns about the Israel-Hamas conflict eased, and expectations of a potentially hawkish stance from the Federal Reserve prevailed. The yellow metal faced a downtrend for the third consecutive day, a shift influenced by the diminishing safe-haven demand.

Influence of Global Economic Indicators

China’s economic challenges offered some support to gold prices, countering the downward pressure. With a contraction in China’s manufacturing sector and warnings from the World Gold Council about potential dampened demand in India, the market experienced a mix of factors impacting gold’s trajectory.

Rupee vs Dollar: Currency Market Analysis

Anticipation Surrounding the Federal Reserve Decision

The imminent Federal Reserve monetary policy announcement heavily influenced market sentiment. Traders awaited cues from key US macro releases and the Fed’s decision, expected to maintain current policies. The anticipation led to caution among traders, reflected in the lack of pronounced bearish trends.

Technical Analysis and Price Outlook

Technically, the gold market witnessed a corrective pullback, yet indicators like the Relative Strength Index (RSI) suggested a possible buying opportunity. The immediate support level hovered around $1,970, while the resistance marked key levels at $1,986, $2,000, and $2,007-2,009, signifying a potential upward trend continuation.

Conclusion and Future Market Expectations

The gold market remains volatile, navigating between various economic indicators and the upcoming Fed decision. While some stability persists due to mixed cues from global markets, the focus remains on the Fed’s decision and its impact on future gold price movements.