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Analysts suggest selling gold on the rise as they expect further profit booking.
US gold futures fell 0.6 percent to $2,028.10.
Gold rate today: Yellow metal falls as dollar rebounds; Support placed at Rs 53,700 per 10 grams level
Gold prices in India fell on the Multi Commodity Exchange (MCX) Tuesday tracking weakness in international spot prices on a strong dollar amid rising tensions between the United States and China, analysts said.
At 11:10 am, gold futures for October delivery fell 1.26 percent to Rs 54,255 per 10 grams as against the previous close of Rs 54,946 and opening price of Rs 54,750 on the MCX. Silver futures traded 1.64 percent lower at Rs 74,160 per kg. The prices opened at Rs 75,000 as compared to the previous close of Rs 75,394 per kg.
“Gold and Silver prices fell on profit booking as the dollar rebounded. We are witnessing a technical correction, however, undertone remains positive,” said Jigar Trivedi, Fundamental Research Analyst at Anand Rathi.
International gold fell on Tuesday as the dollar firmed after Beijing slapped sanctions on US officials in the latest flare-up in tensions between Washington and Beijing, with investors also keeping a close watch on negotiations over a US stimulus plan.
Spot gold was down 0.5 percent to $2,017.98 per ounce, moving further away from a record high of $2,072.50 hit last week. US gold futures fell 0.6 percent to $2,028.10.
According to Ajay Kedia, Director, Kedia Commodities, COMEX gold prices may fall near 1,980 levels going ahead. On MCX, if prices remain below Rs 55,000, then gold may test Rs 53,500 level, he said.
Analysts suggest selling gold on the rise as they expect further profit booking.
“Support for gold is placed at Rs 53,700 while resistance is seen at Rs 54,700-54,900 levels. For silver, support is seen at Rs 73,600-74,000 levels while resistance is placed at Rs 74,600-74,900 levels,” Trivedi added.
