Gold Trades Higher: Gold prices rise before US Fed’s decision, know where you can earn in the commodity today…

Gold trades higher: Gold prices started with gains on the morning of Wednesday, December 10. Before the policy meeting of the US Federal Reserve, investors’ inclination towards gold appeared strong. Gold February futures on MCX were up about 0.20% in early trade and were seen trading at ₹1,30,369 per 10 grams.

Gold trades higher: An increase was also seen in the rate of silver. There was a rise of 1.14% in the March contract on MCX and silver reached ₹ 1,90,210 per kg. The US Fed is going to announce its decision regarding interest rates today. There is an expectation in the market that there will be no major increase in interest rates at present. On the other hand, inflation is still above the Fed’s 2% target, so all eyes are on the policy statement.

Meanwhile, the latest data related to unemployment in America has also provided some support to the market. Initial unemployment claims fell to 191,000 for the week ending November 29, the lowest level in nearly three years. This number is much below the market estimate of 2,20,000, hence there is an atmosphere of optimism among investors.

Comerica Economics expects the Federal Open Market Committee (FOMC) to cut the federal funds rate by 25 basis points to a range of 3.50%-3.75% at its last meeting of the year on Wednesday. While expectations of interest rate cuts are supporting gold prices, rising bond yields are putting pressure on prices. On Monday, the benchmark US 10-year Treasury yield hit a two-and-a-half-month high.

Meanwhile, copper prices fell from record highs on Wednesday. Investors seem to be bracing for tighter guidance from the US Federal Reserve after its two-day policy meeting. This is affecting copper prices. The most traded copper contract on the Shanghai Futures Exchange was down 0.37% at 91,720 yuan per metric tonne at 0315 GMT. Meanwhile, on the London Metal Exchange, benchmark three-month copper traded 0.67% higher at $11,564 a tonne.

Where to make money in commodities today

Today for Profitable Commodity Trading Calls, we are joined by Ajay Kedia of Kedia Commodity. Today they are seeing profit opportunities in gold, silver and crude oil. Ajay Kedia recommends buying MCX Gold around ₹130,000. Keep stop-loss at ₹129,200 and target at ₹131,500. Ajay Kedia’s next choice is silver. He suggests buying silver around ₹187,500. Keep stop-loss at ₹186,000 and target at ₹190,000. Ajay Kedia also likes crude oil. He recommends buying crude around ₹5,300. Keep stop-loss at ₹5,380 and target at ₹5,200.