Gold prices weakened on April 28 in the international markets towards a two-month trough hit in the previous session, as the US dollar steadied near five-year highs, hurting demand for greenback-priced bullion. Spot gold was down 0.1 percent at $1,885.20 per ounce. US gold futures were also down 0.1 percent at $1,886.40.
At 9.47 am, gold contracts were down 0.5 percent at Rs 50,944 for 10 grams on the Multi-Commodity Exchange (MCX) while silver fell 1.04 percent to Rs 64,006 a kilogram.
Gold and silver prices extended losses as the US dollar index surged on the expectation of an aggressive monetary policy tightening by the US Fed in the upcoming meeting. Investors are expecting an interest rate hike by 50 bps fuelling the dollar index, which is trading at the higher levels of 2017, putting pressure on precious metals. In Comex, gold prices have breached the support of $1,900 while silver is trading below $23.50, indicating higher selling momentum, technically. On MCX, gold has support at Rs 51,000 and below this it may test Rs 50,700 levels. Selling pressure in silver is likely to intensify below Rs 64,500 levels, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.