Gold and silver prices in India fell half a percent each on Wednesday tracking weakness in the global spot prices, as the dollar moved higher. A rise in the greenback makes gold more expensive for holders of other currencies.

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On MCX, gold October 5 futures were down 0.53 percent at Rs 47,360 per 10 grams at 9:07 am. Silver futures (September) followed suit, down 0.63 percent at Rs 63,071 per kilogram.

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International gold prices fell on Wednesday as an uptick in the dollar and buoyant risk appetite dimmed the safe-haven metal’s appeal, while investors awaited Federal Reserve Chairman Jerome Powell's speech this week for guidance on the central bank’s taper plans, said a Reuters report.

Spot gold slid 0.5 percent to $1,793.59 per ounce, while US gold futures dipped 0.7 percent to $1,795.90.

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The dollar index -- which gauges the greenback against six other currencies -- was up 0.16 perecent at the time at 93.045, having risen as much as 0.18 percent earlier in the day.

Many analysts expect bullion prices to remain volatile this week.

According to Manoj Kumar Jain, Director-Head of Commodity Research, Prithvi Finmart, gold has support at $1,796-1,784 per troy ounce and resistance at $1,822-1,834 troy ounce.

On MCX, gold finds support at Rs 47,400-47,180 levels and resistance at Rs 47,800-47,950, he said. For silver, he pegs support at Rs 63,100-62,500 per kg and resistance at Rs 63,900-64,400 per kg.

Jain recommends buying gold futures on dips around Rs 47,330 for a target of Rs 47,700 with a stop loss at Rs 47,100.

"Gold is hovering around the $1800/oz level while lack of participation is clearly visible as the market participants await Fed chairman’s speech which could decide the price direction either side. Gold is still trading below 100 DEMA level which is at $1,810 and a major technical resistance to cross," said Sandeep Matta, Founder, TRADEIT Investment Advisor.

The momentum indicators are higher and suggesting a profit booking from these levels therefore our outlook for today is negative for the domestic gold price, he added.

Meanwhile, firm Indian rupee amid strength in the domestic equity market weighed on the precious metal prices.

First Published:Aug 25, 2021 9:24 AM IST