Gold prices in India traded flat on the Multi Commodity Exchange (MCX) Tuesday following a muted trend in the international spot prices amid a strong US dollar.
At 10:35 am, gold futures for August delivery rose 0.13 percent to Rs 48,585 per 10 grams as against the previous close of Rs 48,523 and the opening price of Rs 48,509 on the MCX. Silver futures traded 0.70 percent lower at Rs 71,375 per kg. The prices opened at Rs 71,791 as compared to the previous close of Rs 71,879 per kg.
“The gold prices are expected to trade sideways to negative ahead of the US Federal Reserve meeting. The demand for the precious metals in the physical market has still not picked up, which may weigh on prices,” said Ajay Kedia, Director, Kedia Advisory.
“On MCX, support for gold is seen at Rs 48,150 and resistance at Rs 48,840. Silver may find support at Rs 70,600 and resistance at Rs 71,950,” Kedia said.
International gold prices on Tuesday fell for a third straight day, as an uptick in the dollar dented the safe-haven metal’s appeal, while investors awaited the US Federal Reserve meeting outcome for clues on the trajectory of its unprecedented monetary stimulus, said a Reuters report.
Spot gold was down 0.1 percent at $1,864.82 per ounce, after falling to its lowest since May 17 at $1,843.99 on Monday. US gold futures eased 0.1 percent to $1,866.70.
The dollar held firm near a one-month high versus its rivals, making gold more expensive for other currency holders.
Going ahead, market participants will focus upon the forward action of the Federal Reserve as to whether or not they will begin to taper their massive asset purchases.
The markets are sensitive to the looming inflation threat which was again highlighted yesterday in a consumer expectation survey. The 200-day moving average and 61.8% Fibonacci retracement is at $1,844 for the gold and will be a key level for the gold to hold in next few days,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.
Matta expects a choppy day ahead for the market participants where the key level for the gold August contract will be Rs 48,460.
Meanwhile, strength in the Indian rupee amid gains in the domestic equity market further pressurized the precious metal prices.
Here are gold rates across major cities:
Here are silver rates across major cities:
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First Published: IST