The US Federal Reserve promised further rapid interest-rate hikes to bring down high inflation on Tuesday but pushed back against growing fears among investors and economists that sharply higher borrowing costs will trigger a steep downturn.
Gold futures on
dropped marginally, down 0.10 per cent or Rs 51 at Rs 50,771 per 10 grams. Silver futures traded lower, down by 0.45 per cent or Rs 272 at Rs 59,921 per kg.
Gold prices internationally remained under pressure as a rising US dollar capped any chances of an upside, despite softening of treasury yields, said Patnaik, Head – Commodities, Axis Securities. All ears will be on the Fed chair’s statement tonight.
“The market will look for confirmation of the aggressive maneuvers proposed by Fed members to reign in inflation. If reconfirmed, gold prices could slide further,” he added.
In the spot market, the highest purity gold was sold at Rs 51,029 per 10 grams while silver was priced at Rs 60,518 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.
The spot prices of gold have remained flat in the last one to two weeks, whereas silver has eased mildly in the last one week, the data suggests.
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,810 and resistance at $1,840 per ounce. MCX Gold August support lies at Rs 50,500 and resistance at Rs 51,000 per 10 grams,” said Tapan Patel, Senior Analyst (Commodities),
Spot gold was up 0.1 per cent at $1,821.57 per ounce. US gold futures firmed 0.1 per cent at $1,823.10.
Spot silver was flat at $20.84 per ounce, while platinum rose 0.5 per cent to $914.64 and palladium gained 2 per cent to $1,910.43.
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