Gold prices treaded water on Wednesday in the international markets, with lower US Treasury yields lending support, as bullion's struggle to break out of its range-bound trade continued. Spot gold was up 0.1% at $1,821.57 per ounce by 0254 GMT. US gold futures firmed 0.1% at $1,823.10.
At 9.43am, gold contracts were trading 0.03 percent higher at Rs 50,835 for 10 grams on the Multi-Commodity Exchange (MCX) while silver shed 0.24 percent to Rs 59,399 a kilogram.
Pritam Patnaik, Head - Commodities, HNI and NRI Acquisitions, Axis Securities
Gold prices internationally remained under pressure, as a rising dollar capped any chances of an upside, despite softening of treasury yields. In our domestic markets, a depreciating rupee provided some support to gold prices, which helped MCX gold to close higher by Rs 221, up 0.44% for yesterday’s day of trade.
Today, all eyes will be on the Fed chair’s statement . While he has already made the central Bank’s stance clear, 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. That said, a weak rupee will continue to support local gold prices.
Tapan Patel, Senior Analyst (Commodities), HDFC Securities
Gold prices traded steady on Wednesday with spot gold prices at COMEX were trading near $1822 per ounce in the morning trade. The yellow metal is trading in narrow range of $1820-$1840 on lack of fresh triggers. The traders and investors are weighing global growth worries and tighter monetary policy which has kept gold prices in "no-man's land" territory. The stronger dollar has capped upside in gold prices on reiterated FED stance over larger rate hike.
We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1810 and resistance at $1840 per ounce. MCX Gold August support lies at Rs. 50500 and resistance at Rs. 51000 per 10 grams.
Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart
Gold prices gained 0.40% in the previous session despite rising US bond yield and a stronger US dollar index. US consumer confidence stood at 98.7 versus 103.2 registered earlier. However, Silver prices remained down 0.60% due to weak demand for industrial metals. Today volatility in the precious metals along with crude oil is expected amid OPEC countries' meeting scheduled with the speech of the head of the US Fed, European Central Bank, and Bank of England. Gold prices are steady at this level and are likely to move towards the Rs 51300-51500 levels. It has support at Rs 50400. Silver prices may remain range-bound. It has support at Rs 58000 and resistance at Rs 61000.Disclaimer: The views and investment tips expressed by experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.