Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Thursday tracking a muted trend in the international spot prices weighed down by a stronger US dollar.

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At 11:20 am, gold futures for August delivery fell 0.47 percent to Rs 47,686 per 10 grams as against the previous close of Rs 47,910 and the opening price of Rs 47,759 on the MCX. Silver futures traded 0.65 percent lower at Rs 68,913 per kg. The prices opened at Rs 69,200 as compared to the previous close of Rs 69,365 per kg.

“Gold prices are expected to remain sideways after the US Federal Reserve monetary policy minutes showed mixed signals. The overall trend seems positive and traders are advised to buy gold on drops,” said Ajay Kedia, Director, Kedia Advisory.

“On MCX, gold prices may find support at Rs 47,350 and resistance at Rs 48,180. Silver may find support at Rs 67,800 and resistance at Rs 70,200,” Kedia added.

International gold prices slipped on a stronger dollar after minutes from the US Federal Reserve's latest meeting highlighted inflationary pressures and confirmed that asset purchases tapering is on the cards this year, said a Reuters report.

Spot gold was down 0.3 percent at $1,797.54 per ounce, after gaining for six straight sessions. US gold futures eased 0.2 percent to $1,797.90.

The dollar traded near its highest in three months versus major peers on Thursday after minutes of the Federal Reserve’s June policy meeting confirmed the world’s biggest central bank is moving toward tapering its asset purchases as soon as this year.

A strong dollar makes gold more expensive for other currency holders.

“The perceived optimistic tone of FOMC’s minutes has helped gold to close above $1,800 an ounce after three weeks of sideways consolidation. Central bank buying and higher energy prices are offering bullish tailwinds to precious metals more particularly gold which is also known as an inflation hedge commodity. Technically, the sentiments are bullish for the gold and after crossing the $1,814 level it will reach to $1,835-$1,850 in no time,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.

Meanwhile, weakness in the Indian rupee amid selling in the domestic equity market may support gold prices at lower levels.

“Gold is showing more strength comparison to silver in the daily chart. So traders are advised to create a long position in gold rather than silver and should also focus on important technical levels for the day,” said Amit Khare, AVP- Research Commodities, Ganganagar Commodities.

August Gold: Support 1 – Rs 47,700, Support 2 – Rs 47,500; Resistance 1 – Rs 48,100, Resistance 2 – Rs 48,400.

September Silver: Support 1 – Rs 68,770, Support 2 – Rs 68,200; Resistance 1 – Rs 70,000, Resistance 2 – Rs 70,500.

Here are gold rates across major cities:

Rates including GST

Rates including GST

Here are silver rates across major cities:

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First Published:Jul 8, 2021 11:29 AM IST