MCX Gold and silver see profit booking ahead of US Fed policy decision; check today’s trade setup

Market recap (as of 6:00 pm)

• Gold 3 Oct Futures: ₹1,09,538/ 10 gram (▼ 0.5%)
• Silver 5 Dec Futures: ₹1,26,749/ 1 kg (▼ 1.6%)
• Crude Oil 19 Sept Futures: ₹5,640/ 1 BBL (▼ 0.9%)

Technical view

Gold prices fell as investors took profits ahead of the U.S. Fed meeting, after recently breaching the crucial ₹1,10,000 mark. However, prices are consolidating at higher levels. As long as gold remains above the immediate support level of ₹1,08,600, the bullish trend is likely to remain intact. A close below this level would be the first sign of weakness.

Silver prices also came under selling pressure after forming a doji candle on 16 September and has slipped below the immediate support zone of ₹1,26,300. However, the broader trend of the Silver similar to gold remains bullish as it trades above 21-day and 50-day exponential moving average (EMAs). A close below the ₹1,26,300 will be the first sign of weakness.

Crude oil prices rebounded above the immediate support zones of 21-day and 50-day EMAs on 16 September, forming a bullish candle on the daily chart. However, the broader structure of the crude remains range-bound and is trading within the descending triangle pattern. Unless crude breaks this pattern on the closing basis, the trend may remain range-bound.

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