Gold prices today: Selling pressure on every rise, support seen around Rs 51,400

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Gold prices slipped to a three-week low on Friday in the international markets and were heading for their first weekly decline in five, as a stronger dollar and prospects of more rate hikes by the US Federal Reserve dented its appeal.

Spot gold was down 0.2 per cent at $1,755.89 per troy ounce, as of 0107 GMT, after falling to its lowest since July 29 at $1,753.68 in early Asian trading. For the week so far, gold is down 2.5 per cent.

At 9.54am, gold contracts were trading 0.3 per cent lower on the Multi-Commodity Exchange (MCX) at Rs 51,451 per 10 grams and silver shed 0.9 per cent at Rs 55,936 a kilogram.

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Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart

Bullion prices were lower yesterday as some Fed members favoured an aggressive monetary policy. The US dollar index gained for the second consecutive day, putting pressure on Gold and Silver prices. On the US data front, Philly Fed Manufacturing Index and unemployment claims stood stronger, attracting investors towards riskier assets. Technically, any rise in precious metals towards the resistance level may add to the selling pressure. Gold has support at Rs 51,400 and resistance at Rs 52,000. Silver has support at Rs 56,300 and resistance at Rs 57,400.

Tapan Patel, Senior Analyst (Commodities), HDFC Securities

Gold prices traded weak on Friday with spot gold on COMEX trading marginal down near $1,757 per troy ounce this morning. The yellow metal traded under pressure over a stronger dollar index which rose above 107 against a basket of major currencies. The lack of fresh triggers has also capped upside in gold prices.

We expect gold prices to trade sideways to lower for the day, with COMEX Spot support at $1,740 and resistance at $1,770 per troy ounce. MCX Gold October futures support is at Rs 51,200 and resistance at Rs 51,900 per 10 grams.

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