Gold prices inched lower on Thursday in the international markets, as a firmer dollar and expectations of big interest rate hikes from the US Federal Reserve diminished the metal's appeal. Spot gold fell 0.1 percent to $1,693.81 per ounce, as of 0110 GMT. US gold futures were down 0.3 percent at $1,704.4.
At 9:56am, gold contracts were trading 0.45 percent lower on the Multi-Commodity Exchange (MCX) at Rs 49,795 for 10 grams and silver was down 0.22 percent at Rs 56,859 a kilogram.
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Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities
COMEX gold trades modestly lower amid stable US dollar and higher bond yields as US inflation data did little to deter market expectations that the Fed may continue with aggressive rate hikes. Also weighing on gold price is continuing ETF outflows which shows lack of investor interest. Gold has corrected after failing to break past the $1750/oz level and may remain under pressure as market players position for the Fed meeting next week however we need to see if it manages to hold near the $1700/oz level.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
Gold prices traded weak on Thursday with COMEX Spot gold prices were trading near $1691 per ounce in the morning trade. The yellow metal fell below $1700 on growing optimism over aggressive rate hike from US Fed with surge in inflation numbers. The dollar index was up lowering demand for the precious metals.
We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1676 and resistance at $1710 per ounce. MCX Gold October support lies at Rs. 49800 and resistance at Rs. 50300 per 10 gram.
Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart
Gold prices remained flat yesterday as the US dollar index slipped 0.35% while Silver prices gained marginally. The upside in precious metals may remain limited due to Fed's aggressive monetary policy expectation. Day trend in precious metals may remain down. Gold has support at 50000 below this level price may test 49800 levels. It has resistance at Rs 50300. Silver has resistance at Rs 57700 and support at Rs 56000.
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