Gold falls marginally on Tuesday: High buying interest expected - check key support levels

Gold falls marginally on Tuesday: Gold prices recovered lost ground from one-month lows as the dollar index has erased some of the gains after surging to a fresh two-decade high while prompting flows in the safety of gold. However, the price of the yellow metal on Tuesday has slipped marginally in the national capital. 

Gold price fell Rs 66 to Rs 51,469 per 10 grams amid rupee appreciation, according to HDFC Securities. In the previous trade, the yellow metal had closed at Rs 51,535 per 10 grams. 

In the immediate short term, gold is likely to remain supported around the $1720 per ounce mark, while key support is seen at the $1680 per ounce mark, Sugandha Sachdeva, Vice President - Commodity and Currency Research, Religare Broking said in her comment on the yellow metal. 

On the other hand, the prices have key support at Rs 50,700 per 10gm mark at the domestic markets and are expected to witness renewed buying interest where they can edge higher towards levels of around Rs 51550-51800 per 10gm in the coming days, the analyst at Religare Broking said. 

The greenback which rose above the 109-mark after the Jackson Hole event, has retreated against the euro amid prospects that the European Central Bank will raise rates more aggressively than previously anticipated.  

Market participants are expecting a 75 basis points rate hike by the European Central Bank at their September meeting, which may keep the dollar under check and underpin the precious metal in the near term, Sachdeva further said.  

On the contrary, Silver gained marginally by Rs 4 to Rs 55,550 per kilogram on Tuesday from Rs 55,546 per kg in the previous trade. 

"Spot gold prices for 24-carat gold in Delhi fell by Rs 66 per 10 grams on sharp rupee appreciation despite steady COMEX prices," said Tapan Patel, Senior Analyst (Commodities) at HDFC Securities. 

In the international market, both gold and silver were trading flat at USD 1,736.80 per ounce and 18.81 per ounce, respectively. 

With PTI Inputs