Gold prices today: Yellow metal continues to lose sheen, barely holds Rs 50,000

Domestic gold prices plunged on Wednesday with MCX gold futures sliding by 0.48 percent to touch the intraday low of Rs 50,038 per 10 grams. White metal future, dropped 0.72 percent to Rs 50,038 per kilogram.

Meanwhile global gold prices too fell, as the US dollar and Treasury yields jumped after upbeat economic data bolstered expectations that the Federal Reserve will continue hiking interest rates aggressively. Spot gold was down 0.5 percent at $1,692.99 per ounce as of 0330 GMT, having earlier fallen to a one-week trough. US gold futures fell 0.6 percent to $1,703.30.

Manoj Kumar Jain, Head-Commodity and Currency Research at Prithvi Finmart, said, "At MCX, gold is having support at 50100-49920 and resistance at Rs 50,440-50,650 while silver is having support at Rs 52,750-52,300 and resistance at Rs 53,660-54,100. We suggest selling gold on rise around Rs 50,500 with a stop loss of Rs 50,750 for the target of Rs 50,000."

Ravindra Rao, VP- Head Commodity Research at Kotak Securities, said, "Gold may remain under pressure unless we see substantial correction in the US dollar."

Meanwhile, the dollar surged weighing heavily on regional currencies. As of 9.29 am (IST), US Dollar Index Future was up 0.35 percent at 110.597. However, Asian currencies tumbled against the dollar due to a surge in the US bond yields. Spot gold lost 0.4 percent to $1,694 an ounce.

Indian equity benchmarks failed to hold on to the green amid mixed global cues on Tuesday, dragged by losses in financial, FMCG and IT shares, though gains in oil & gas and metal stocks arrested the fall.

Also, equities in other Asian markets tumble, tracking a weak session overnight on Wall Street where investors returned to trade after the Labor Day holiday.

In energy markets, crude oil rates fell sharply over demand-supply concerns. Brent crude futures fell $1.12, or 1.2 percent, to $91.71 a barrel at 0113 GMT after slipping 3 percent in the previous session.