Bullion counter may witness profit booking at higher levels after the recent upside on bounce back in greenback. Moreover movement of local currency rupee will give further direction to the prices. Gold can move in range of 31100-31400 while silver can move in range of 46500-47200 in near term.
The Fed signalled an increasingly careful approach to future rate increases after a policy meeting on last Wednesday, reassuring investors who had feared the US central bank could move more quickly to tighten monetary policy.
Gold is highly sensitive to raising US interest rates, as these increases the opportunity cost of holding non-yielding bullion, while boosting the US dollar, in which it is priced. The Fed's next meeting is set for November 1-2, ahead of the US presidential election on November 8.
Courtesy: Smc Comtade