Gold prices on MCX traded lower on Wednesday tracking losses in international prices as hawkish comments from a US Federal Reserve official dampened bets for interest rate cut in March.
MCX gold traded 0.18% lower at ₹61,901 per 10 grams. Silver prices also fell 0.67% to ₹71,607 per kg.
International gold prices hit a near one-week low as the US dollar strengthened, while traders awaited comments from more Fed speakers this week.
Spot gold fell 0.5% to $2,018.29 per ounce. It stooped 1.3% in the previous session, which was its biggest single-day decline since December 4, 2023, Reuters reported. US gold futures fell 0.4% to $2,021.30.
“The trend in gold prices remains bearish and international gold has breached the $2,020 level amid a spike in dollar on dampened bets of early rate cuts in the US. All the positives for gold have been discounted in the price and it is now in correction mode,” said Ajay Kedia, Director, Kedia Advisory.
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The US dollar index rose 0.2%, making bullion more expensive for other currency holders. It jumped to a more-than-one-month high on Tuesday after Fed Governor Christopher Waller said the US central bank should not rush to cut rates until lower inflation can clearly be sustained, Reuters reported.
On the domestic front, weakness in rupee is likely to support yellow metal prices. Silver prices also reeled under pressure amid no signs of major demand improvement.
“Gold may find support at ₹61,000 level, while resistance is seen at ₹62,800. Support for silver is seen at ₹70,200 and resistance is placed at ₹73,500 level,” Kedia said.
He believes the trend for gold and silver prices is expected to remain negative going ahead.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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