The dollar and longer-term Treasury yields retreated from recent highs following higher-than-expected US inflation data, which supported bullion.
MCX gold futures were trading down 0.22%, or Rs 107, to Rs 47,809 per 10 grams. Likewise, silver futures fell 0.55%, or Rs 346, to Rs 62,718 per kg.
The yellow metal traded higher at the start of trading, gaining inflation data in the United States. U.S. FOMC minutes showed that the Federal Reserve could begin to phase out its bond buying program by mid-November of this year.
Consumer prices in the United States rose sharply in September as Americans paid more for food, rent and a range of other goods, pressuring the Biden administration to urgently resolve the issues. strained supply chains, hampering economic growth.
The minutes of the Federal Reserve’s September meeting showed that the central bank could start reducing its support for the US economy during times of crisis by mid-November.
Vidit Garg, Director of MyGoldKart, said, “Gold is just tracking returns at the moment. The initial reaction after the CPI (Consumer Price Index) data was a sharp increase in yields, which are now starting to fade.
Physical gold rates in India soared nearly two months in the domestic market after trading at a haircut for more than two months, thanks to heavy purchases of the yellow metal ahead of the holiday season .
On the spot market, the highest purity gold was sold at Rs 47,487 per 10 grams while silver was priced at Rs 62,136 per kg on Tuesday, according to the Indian Bullion and Jewelers Association.
The spot price of the yellow metal has gained around Rs 1,650 per 10 grams over the past two weeks, while silver has risen to over Rs 4,000 per kg during the period under review.
Ravi Singh, vice president and head of research, ShareIndia, said the IMF cut its global growth forecast for 2021 in its July report. Flickering confidence in global economies is expected to push up gold prices.
“We expect gold prices to trade sideways higher for the day with COMEX spot gold support at $ 1,770 and resistance at $ 1,800 an ounce. MCX Gold support for December is at Rs 47,600 and resistance at Rs 48,200 per 10 grams “, Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold was little changed at $ 1,793.72 an ounce at 0100 GMT. Prices hit their highest level since September 16 at $ 1,795.81 on Wednesday. US gold futures slipped 0.1% to $ 1,792.20.
Spot silver rose 0.1% to $ 23.09 an ounce, after peaking nearly a month in the previous session. Platinum was flat at $ 1,019.68 and palladium fell 0.1% to $ 2,103.81, after jumping 5.2% on Wednesday.