Gold price today: Yellow metal edges lower after Dollar index strengthens

Gold futures traded lower on September 27, following strength in the dollar index, but slower growth in Europe capped the downside.

October futures for the yellow metal were trading at Rs 37,456 per 10 gram, down Rs 338, or 0.89 percent, on the MCX around 1708 hours IST.

On September 26, gold gained around 0.50 percent in the domestic market but trended mixed globally.

Spot Gold in the international market closed around $1,505 an ounce. Euro slipped to a two year low on September 26 on concerns the European economy is on a slower growth path. This supported gold prices, whereas strength in the Dollar index capped gains.

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Excessive news flow from the international market, with US President Donald Trump's impeachment grabbing headlines, the status of US-China trade deal talks and concerns over Saudi oil production is keeping gold prices volatile.

"We expect international gold prices to move in a $1,494-1,515 range. On the MCX, gold is expected to move in the Rs 37,500-38,050 range," said Manoj Kumar Jain, Director at IndiaNivesh Commodities Pvt.

Silver December futures were down Rs 1,087, or 2.34 percent, at Rs 45,293 per kg on the MCX around 1708 hours IST.

On September 26, silver prices closed with a loss of around a percent. Prices slipped below $18 per troy ounce and Rs 46,500 per kg in the international and domestic markets, respectively.

"We see strong support for silver around Rs 45,800 levels and expect prices to move in the Rs 45,800-46,700 range. If prices slip below Rs 45,800, it could further weaken towards Rs 45,500 levels. Strength is possible only when prices sustain above Rs 46,700 levels. In that case, the rally could extend towards Rs 47,100 levels," Jain said.