The dollar remained stronger, and investors looked past the economic threats associated with the increase in cases of the Delta coronavirus variant and opted for riskier bets.
MCX gold futures fell 0.23% or Rs 109 to Rs 47,464 per 10 grams. Silver futures were slightly less than 0.05% or Rs 36 to Rs 67,101 per kg.
Ravindra Rao, CMT, EPAT, vice president, head of commodities research at Kotak Securities, said gold is under pressure by improving risk sentiment and bond yields rising from lows recent.
“However, price support persists virus risks and inflation concerns and expectations that the ECB may maintain an accommodative stance,” he added.
The dollar index remained stable, hovering below a 3.5 month high. Benchmark US Treasury yields continued to rebound from five-month lows
On the spot market, the highest purity gold was sold at Rs 48,222 while silver was priced at Rs 66,980 on Tuesday, according to the Indian Bullion and Jewelers Association. The precious market remained closed on Wednesday.
Physical gold has gained up to Rs 1,500 since the start of this month. However, Silver lost over Rs 2,100 during the period.
ETF investors sit on the sidelines waiting for new triggers. Buying interest could be felt at lower levels amid persistent challenges for the global economy.
“We expect gold prices to trade sideways lower for the day with COMEX spot gold support at $ 1790 and resistance at $ 1820 an ounce. MCX Gold support August stands at Rs. 47,200 and resistance at Rs. 47,800 per 10 grams, ”Tapan Patel said. , Senior Analyst (Commodities), HDFC Securities.
Spot gold was down 0.3% to $ 1,798.27 an ounce at 3:13 GMT after hitting its lowest level since July 12 at $ 1,793.59 in the previous session. US gold futures fell 0.3% to $ 1,798.70 an ounce.
Among other precious metals, silver edged down 0.1% to $ 25.21 an ounce, palladium rose 0.4% to $ 2,665.21 and platinum was flat at 1,080 , $ 39.