Gold prices in India traded flat on the Multi Commodity Exchange (MCX) Tuesday following a muted trend in the international spot prices as investor eye key economic data from the US, analysts said.
At 11:25 am, gold futures for August delivery was flat at Rs 49,150 per 10 grams as against the previous close of Rs 49,143 and the opening price of Rs 49,146 on the MCX. Silver futures traded 0.39 percent lower at Rs 71,535 per kg. The prices opened at Rs 71,606 as compared to the previous close of Rs 71,817 per kg.
“On the domestic front, gold is trading at a discount as the physical demand is lower. The overall sentiment for gold prices looks positive as higher inflation concerns are supporting prices of the precious metals in the international markets,” said Ajay Kedia, Director, Kedia Advisory.
International gold prices edged lower on Tuesday, weighed down by an uptick in the dollar, while investors cautiously awaited US economic data due later this week to gauge inflationary pressure and the Federal Reserve’s steer on monetary policy, a Reuters report said.
Spot gold was down 0.2 percent at $1,895.59 per ounce. US gold futures were steady at $1,898.60.
The dollar index rose 0.1 percent against its rivals, making gold more expensive for other currency holders.
Investors will be waiting for key US inflation data due later this week for more indications about the Fed’s policy outlook, Kedia said.
"On MCX, support for gold is seen at Rs 48,800 and resistance is placed at Rs 49,620. Silver may find support at Rs 70,900 and resistance at Rs 73,200," Kedia added.
Meanwhile, a flattish trend in Indian rupee amid volatile trade in the domestic equity market also weighed on the yellow metal prices.
Here are gold rates across major cities:
Here are silver rates across major cities:
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