NEW DELHI: Gold prices held steady on Wednesday. The yellow metal traded flat, helped by a slight pullback in dollar. Investors awaited US inflation data to gauge the Federal Reserve’s path on normalizing policy.
The yellow metal was little changed on softer dollar and lower US bond yields. The dollar index was down in early trade. Gold prices traded with firm trading range ahead of US FOMC minutes and inflation data due later in the day.
Gold futures on MCX were trading marginally down by 0.04 per cent or Rs 19 at Rs 47,179 per 10 gram. On the other hand, silver futures were up 0.36 per cent or Rs 224 at Rs 61,810 per kg.
The US consumer price inflation data is due, while the minutes from Fed’s September 21-22 policy meeting will be released later in the day.
Ravi Singh, Vice President & Head of Research, ShareIndia, said a stronger US dollar, expectation of Fed tapering and higher US Treasury yields have kept downward pressure on gold since June.
Physical gold rates in India flipped to a discount for the first time in over two months last week as a rise in local prices curbed demand.
In the spot market, highest purity gold was sold at Rs 47,335 per 10 gram while silver was priced at Rs 61,638 per kg on Tuesday, according to the Indian Bullion and Jewellers Association.
The spot price of the yellow metal has gained about Rs 1,500 per 10 gram in the last 10 sessions, whereas silver rose more than Rs 3,550 per kg during the period under review.
Sandeep Matta, Founder, TRADEIT Investment Advisor, said, “The precious metal registered double-digit gain as IMF trimmed its global growth outlook due to increasing threats from supply chain bottlenecks and delta variant.”
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,745 and resistance at $1,775 per ounce. MCX Gold December support lies at Rs 46,900 and resistance at Rs 47,500 per 10 gram,” Tapan Patel, Senior Analyst (Commodities), HDFC Securities, said.
Spot gold was little changed at $1,760.26 per ounce by 0305 GMT, while U.S. gold futures rose 0.1% to $1,760.60.
Among other precious metals, spot silver rose 0.2% to $22.57 per ounce, while platinum and palladium were down 0.2% at $1,005.00 and $2,041.24, respectively.