Gold prices fall over to a three-week low on Friday in the global markets and were heading for their first weekly decline in five, as a stronger dollar and prospects of more rate rises by the U.S. Federal Reserve dented its appeal. Gold contracts were trading 0.3% lower on the Multi-Commodity Exchange (MC-X) at Rs.51,451 per 10 grams and silver declined 0.9% at Rs. 55,936 a kilogram. MCX Gold futures (October) support is at Rs.51,200 and resistance at Rs.51,900 per 10 grams
“Bullion prices were lower yesterday as some Fed members favored a strong monetary policy. The U.S. dollar index gained for the second consecutive day, putting pressure on Gold and Silver prices. On the U.S. data front, Philly Fed Manufacturing Index and unemployment claims stood stronger, attracting investors toward riskier assets,” said Nirpendra Yadav, Senior Commodity Research Analyst.
Technically, any rise in precious metals towards the resistance level may add to the selling pressure. Gold has support at Rs. 51,400 and resistance at Rs. 52,000 levels. Silver has support at Rs. 56,300 and resistance at Rs. 57,400 levels, he added.
Tapan Patel, Senior Analyst, HDFC Securities told that The yellow metal traded under pressure over a stronger dollar index which was high above 107 against a basket of major currencies. The lack of fresh triggers has also capped the upside in gold prices. MCX Gold October futures support is at Rs.51,200 and resistance at Rs.51,900 per 10 grams.
