Domestic gold prices extended gains in choppy trade on Wednesday amid gains in domestic equities. Global gold benchmarks remained unchanged as investors awaited the release of minutes of Fed policy meetings.
MCX gold October futures climbed 0.2 percent to touch the intraday high of Rs 51,965 per 10 grams. White metal future, rose 0.6 percent to Rs 57,990 per kilogram.
Ravindra Rao, VP-Head Commodity Research at Kotak Securities “COMEX gold trades little changed near $1790/oz amid choppiness in US dollar and bond yields ahead of FOMC minutes due later today."
"Expectations of Fed’s hawkish stance has already pulled gold off 1-month high but we may see extended losses if Fed affirms support for aggressive rate hikes,” Rao added.
Manoj Kumar Jain, Head-Commodity and Currency Research at Prithvi Finmart, suggests buying gold on dips around Rs 51,700 for a target of Rs 52,100 with a stop loss at Rs 51,480.
Indian equity benchmarks opened in green mirroring positive cues from global markets. The rupee edged higher to 79.27 against the US dollar.
The dollar index — which gauges the strength in the greenback against six peers — remained flatish.
