Domestic gold prices extended losses on Friday amid fall in domestic equities. Global gold benchmarks hit three-week low amid rate hike fears and strong dollar.
MCX gold October futures fell 0.3 percent to touch the intraday low of Rs 51,436 per 10 grams. White metal future, fell 1.4 percent to Rs 55,648 per kilogram.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities said, "Gold has corrected sharply after failing to build on gains above $1800/oz level and may remain under pressure as US dollar holds firm despite ongoing debate about Fed’s monetary tightening"
Manoj Kumar Jain, Head-Commodity and Currency Research at Prithvi Finmart, suggests selling gold around Rs 51,800 for a target of Rs 51,380 with a stop loss at Rs 52,020.
Indian equity benchmarks traded in red amid mixed cues from global markets. The rupee edged higher to 79.75 against the US dollar.
The dollar index — which gauges the strength in the greenback against six peers — rose 0.2 percent.
