MCX gold futures fell slightly 0.10%, or Rs 47, to Rs 47,213 for 10 grams. Silver futures fell 0.29%, or Rs 186, to Rs 63,399 per kg.
The yellow metal rose after US CPI data was in line with expectations. The expected US CPI data will now fuel the debate on the Fed’s tapering. However, a stronger dollar could cap the rise of gold.
The data has cast a shadow of uncertainty over the Federal Reserve’s taper schedule as it is due to hold a two-day monetary policy meeting next week.
Ravindra Rao, CMT, EPAT, VP – Head Commodity Research at Kotak Securities, said gold recovered from yesterday’s gain but remains supported by the weaker US dollar, new concerns about viruses, disappointing economic data from China, concerns over China’s regulatory crackdown and geopolitical rise in tensions.
“ETF investors have moved on the sidelines after brief entries earlier in the week. Gold could see choppy trading with the US dollar, but growing challenges to the global economy and pressure easing on prices in the United States could keep prices sustained, “he added.
On the spot market, the highest purity gold was sold at Rs 47,017 per 10 grams while silver was priced at Rs 62,806 per kg on Tuesday, according to the Indian Bullion and Jewelers Association.
The spot price of the yellow metal has fallen by around Rs 400 over the past week, while silver has soared to Rs 1,300 per kg over the same period.
Sandeep Matta, Founder, Investment Advisor of TRADEIT, said: “Gold has risen after the release of the Consumer Price Index, which is a clear indication that inflationary pressures are still looming in the economy and that now is a good time to sit on cash or invest in safe haven. . ”
“We expect gold prices to trade sideways higher for the day with COMEX Spot gold support at $ 1,790 and resistance at $ 1,815 an ounce. MCX support Gold October is at Rs 46,900 and resistance at Rs 46,500 per 10 grams, “said Tapan Patel, Senior Analyst (commodities), HDFC Securities.
Spot gold was flat at $ 1,808.50 an ounce at 3:18 a.m. GMT, after hitting a one-week high of $ 1,808.50 on Tuesday. US gold futures fell 0.2% to $ 1,804.30.
Silver fell 0.3% to $ 23.76 an ounce. Platinum hit a nine-month low of $ 926.26 and lost 0.4% to $ 935.52. Palladium was down 0.3% to $ 1,971.91.