Gold Rate Today: Gold inches down after Fed outcome

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Gold and silver were trading lower in morning trade on Friday as the dollar strengthened after the US Federal Reserve kept interest rates steady with a fourth hike for this year expected next month.

MCX Gold futures were down 0.23 per cent at Rs 31,335 per 10 gram at around 11.35 am (IST), while MCX Silver was down 0.11 per cent at Rs 37,570.

According to SMC Global Securities, bullion counter may trade on weak bias on Friday. The yellow metal can take support near Rs 31,250 and can face resistance near Rs 31,600 in MCX. While silver can take support near Rs 37,200 and can face resistance near Rs 38000.

The Fed’s statement on Thursday overall reflected little change in its outlook for the economy since its last policy meeting in September. Inflation remained near its 2 per cent target, unemployment fell, and risks to the economic outlook were still felt to be “roughly balanced.” China wants to resolve problems with the United States through talks but it must respect China’s choice of development path and interests, President Xi Jinping said on Thursday ahead of a meeting with the US leader in Argentina.

Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.19 per cent to 755.23 tonnes on Wednesday, marking the fourth straight session on declines, according to Reuters.

Source: Economic Times