MCXTIPS SILVER UPDATES
Precious Metals are trading slightly higher today after the FED meeting minutes showed that the central bank remained divided on the decision to raise rates in December. Gold futures are trading at $1297.43/oz, up $8.50 or 0.66% whereas Silver is trading higher by about half a percent to trade at $17.232/oz.
Minutes from the Federal Reserve’s September meeting showed that several policymakers remained unsure about the December rate hike, given the persistent weakness in macroeconomic data releases over the past few weeks. The minutes also indicated that even though another rate hike was likely, it would mostly depend on inflation data over the next few months.
According to CME group’s FED watch tool, fed funds futures are pricing in an 81.7% chance of a rate hike in December, down from 87% before the minutes. The focus today will be on the claims and PPI report both of which are expected to improve over the previous releases and that could push bullions lower in intraday.
In intraday, support for Gold is seen at Rs.29, 800 and then further lower at Rs.29,700. On the upside, a breakout above resistance at Rs.29, 900 should push prices to Rs.30, 000-Rs.30, 100 today. For Silver, support is at Rs.40, 200 and resistance is at Rs.40, 400-Rs.40, 500.
