Gold Price Steady Internationally; MCX Gold Tops Rs. 51,711/ 10 gm

Gold prices in the international markets held more or less steady, swinging between gains and losses. At around the time of writing this copy at 12:41 pm (IST) or 3:09 NY time, spot gold traded with marginal gains of 0.01% at $1761.7 per ounce. This is largely as the latest Fed minutes signalling a lesser aggressive rate hike in the future course by the US Fed led the US dollar and treasury yields saw some pullback.

On Wednesday, spot gold fell to a 2-week low of $1753.97 per ounce. The losses were given the gains in the dollar index. Also, the benchmark treasury yield surged to 2.9% amid expectations of an aggressive Fed stance.

Till last week, gold was logging an unbroken rally, rising for four straight weeks in a technical run-up after hitting a low of $1696.1 per ounce in mid-July.

Gold prices on the MCX

Back home on the MCX, gold futures contract for October gained and was last trading at Rs. 51,680, up Rs. 137 or 0.27%. Gold has resistance at Rs 52000 and support at Rs 51000. Silver has support at Rs 56000 and resistance at Rs 58400, said Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart.

"Gold may remain volatile as support from global growth worries, geopolitical issues and inflation concerns is countered by weaker investor interest and concerns about consumer demand. However, with Fed expected to continue with rate hikes, US dollar may remain supported and this may pressurize gold", noted Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.