Domestic gold prices gave up initial losses on Wednesday to touch a one-week high mark. Global benchmarks remained unchanged as investors await the outcome of US Federal Reserve's meeting.

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MCX gold August futures rose 0.2 percent to touch the intraday high of Rs 50,695 per 10 grams. White metals future climbed 0.6 percent to Rs 55,029 per kilogram.

Talking to CNBC-TV18, Chirag Sheth, Senior Research Consultant, Metals Focus, said that there's support coming in at lower levels because of the increased buying due to lower costs. However, he added, "We are not seeing any significant physical buying taking place. So, people are still waiting for what is likely to come out of Fed."

Sheth believes that gold market is poised to go down towards $1,650 per ounce by end of this year. "But in the short term a bit of bounce back can happen and then markets can again go back to lower levels."

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Manoj Kumar Jain, Head-Commodity and Currency Research at Prithvi Finmart, suggests buying gold on dips around Rs 50,500 for a target of Rs 50,850 with a strict stop loss at Rs 50,330.

Global oil benchmarks surged on Wednesday backed by weaker demand concerns.

Domestic equity benchmarks BSE Sensex and NSE Nifty50 saw choppy moves after a flat start. The rupee edged lower to 79.83 against the US dollar.

The dollar index — which gauges strength in the greenback against six peers — fell 0.2 percent to 106.9.

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First Published:Jul 27, 2022 2:43 PM IST