Gold prices fall today to the lowest level in about 6 months, silver prices fall

Geojit said in a note that volatility in gold with negative trend is expected to continue for the day. “A direct drop below $1,740 would trigger further major selling pressure,” the brokerage said. The dollar index held near one-month highs, impacting gold’s appeal to holders of other currencies.

Analysts expect the Fed to announce a timeline for reducing its monthly bond purchases as its two-day meeting begins tomorrow. The US central bank could also issue new economic projections and a new reading on officials’ interest rate expectations. Gold is often seen as a hedge against potential inflation and currency depreciation from broad stimulus. A reduction in incentives may reduce the appeal of gold.

In addition, higher interest rates increase the opportunity cost of having a non-interest bearing. Sleep.

Among other precious metals, silver fell 0.3% to $22.33 an ounce, while platinum fell 0.1% to $940.39.

“For Silver, weak bias will continue initially but strong support is seen at $21.80, which may sustain further large liquidation pressure,” Geojit said.

In a note, Kotak Securities said gold may remain volatile, reflecting trends in the US dollar and equity markets as market players assess the monetary policy of the Fed and the economic health of China. Analysts say on the downside, gold may be supported by virus risks, rising inflation concerns, uneven global economic recovery, geopolitical tensions and regulatory measures from China, say analysts. Kotak expects gold rates to stabilize at $1,750 an ounce. (with agency input)