MCX gold futures fell 0.51%, or Rs 51, to Rs 48,472 per 10 grams. Silver futures fell 0.80%, or Rs 575, to Rs 71,304 per kg.
The strengthening US dollar weighs on gold prices. The greenback rose 0.1% to near a one-month high against its counterparts, making gold more expensive for other currency holders.
Investors are also awaiting the results of the two-day Fed policy meeting scheduled for Wednesday. Economists expect the much-anticipated spending cut announcement to come in the next quarter, despite a patchy labor market recovery. Monthly US retail sales data is due late in the day and will also be on the radar.
Demand for physical gold has collapsed in India, the world’s second largest gold market. Stores are not yet fully open in the country and resellers are still forced to offer discounts.
On the spot market, the highest purity gold was sold at Rs 48,345 while silver was priced at Rs 71,340 on Monday, according to the Indian Bullion and Jewelers Association.
“COMEX gold is trading slightly lower to near $ 1,864 / oz after falling 0.7% yesterday. Gold remains under pressure from the recovery in US bond yields as market participants position themselves for Fed decision. ETF investors have also moved on the sidelines, “Ravindra Rao, CMT, EPAT, Senior Vice President of Commodities Research, Kotak Securities.
“However, support prices are choppy stocks, growing inflation concerns and lingering virus issues. Gold has already corrected sharply in anticipation of the Fed’s hawkish stance, so we may witness to a limited range and choppy trade before the decision. ”
“We expect gold prices to trade sideways higher for the day with COMEX gold support at $ 1848 and resistance at $ 1880 per ounce. MCX Gold August support sits at Rs 48,100 and resistance at Rs 48,800 per 10 grams, “said Tapan Patel, senior analyst. (Commodities), HDFC Securities.
Spot gold was down 0.2% at $ 1,861.96 an ounce at 2:24 am GMT after falling to its lowest level since May 17 at $ 1,843.99 on Monday. US gold futures fell 0.1% to $ 1,863.10.
Silver fell 0.7% to $ 27.64 an ounce, palladium was flat at $ 2,749.66 and platinum slipped 0.6% to $ 1,158.54.