Gold Prices In India: Gold Falls To 1-Month Low; Outlook Bearish In The Short Term

Gold prices after eking out gains in early trade on Tuesday traded soft by a tad. Spot gold internationally at around the time of writing this copy at 12:53 pm (IST) or 3:19 NY time traded down by 0.07% at $1735.7 per ounce. Gold Futures-December 22 more or less traded steady at $1748.1.

In the previous session gold hit a near 1-month low of $1727.01 on strength in the US dollar index and rising treasury yield. Gold's safe haven appeal has reduced after the recent hawkish comments from the US policymakers where they iterated to continue with the same rate hike pace despite softening seen in inflation in the July month.

Now Fed funds futures see 56.5% probability of 75 bps rate hike by the Fed in its September meeting.

Meanwhile, investors focus shift to the Fed's Jackson Hole, Wyoming, symposium due later this week.

"Gold prices continued their southward movement thanks to a stronger US dollar and rising 10 yr bond yields. Gold prices have been correcting in the last seven trading sessions, as the US dollar hit its 6-week high levels, aided by fears of recession and hawkish US Fed. With Russia planning a fresh series of the aggressive campaign in Ukraine, US dollar will attract further safe heaven flows, leading to additional pressure on gold. Expect gold to trade weaker till the Jackson Hole event slated on Friday", Pritam Patnaik, Head - Commodities, HNI & NRI Acquisitions, Axis Securities.

Gold MCX

Meanwhile, mirroring trend overseas, October gold futures were dragged lower by a margin to Rs. 51123 per 10 gm, down 0.08%. On MCX, the precious metal's all time high is Rs. 52,650 per 10 gm.

"At MCX, gold has support at Rs 51000-50880 and resistance at Rs 51330-51500 while silver has support at Rs 54650-54400 and resistance at Rs 55300-55550", suggests Manoj Kumar Jain, Prithvi Finmart Commodity Research. "We suggest buying gold around Rs 51050 with a stop loss of Rs 50880 on a daily closing basis for target of Rs 51350", he adds.

Gold in major cities in India

Gold rates vary across cities in India owing to factors such as transportation cost, taxes, volume etc. Here below are given the gold rates (24 carat) in major cities in India which have declined to lowest in a month.

Mumbai- Rs. 51,230

Delhi-Rs. 51,440

Chennai-Rs. 52400

Kolkata-Rs. 51,230

Bengaluru-Rs. 51,330

Hyderabad-Rs. 51,230

Pune-Rs. 51,260

Kerala- Rs. 51,230