Gold Prices Today: US Fed minutes, inflation data to keep precious metals range-bound

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Gold prices inched lower on Wednesday in the international markets as traders looked forward to US Federal Reserve minutes and key inflation data for clues on the pace of future interest rate hikes.

Spot gold fell 0.1 percent to $1,663.60 per ounce, as of 0055 GMT, hovering close to a one-week low touched on Tuesday. US gold futures were down 0.8 percent at $1,673.30.

At 09:51 am, gold contracts were trading 0.36 percent lower on the Multi-Commodity Exchange (MCX) at Rs 50,911 for 10 grams and silver shed 1.18 percent at Rs 57,843 a kilogram.

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Comex spot Gold is back below the $1680 level, as the dollar regained its safe haven appeal before Fed minutes, which is due later in the day. It is expected that Fed's stance will remain hawkish in upcoming policy meet. They will continue to raise the interest rates by 75 basis points to check the high inflation. US inflation data, which will be released this week, may define the gold trend for the month of October.

Precious metals recovered yesterday as the US dollar index eased ahead of FOMC meeting minutes. Global economic health is likely to deteriorate due to aggressive interest rate hikes. Fear of recession increases the haven demand and supports the precious metals prices at lower levels. Day trend in precious metals may remain range bound to the upside. Gold has support at Rs 50600 and resistance at Rs 51400. Silver has support at Rs 57300 and resistance at Rs 59500.