Domestic gold prices extended losses on Tuesday tracking losses in the global market. A rise in the dollar and concerns about additional interest rate hikes by US Fed dampened sentiments. Global gold benchmarks maintained ground supported by lower Treasury yields and firmness in the dollar.
MCX gold October futures fell 1.2 percent to touch the intraday low of Rs 51,932 per 10 grams. White metal future, fell 2.4 percent to Rs 57,835 per kilogram.
Ravindra Rao, VP- Head Commodity Research at Kotak Securities said, "Gold rallied sharply in last few days but seems to be losing momentum near $1800/oz level and we may see some correction if Fed maintains a hawkish stance."
Manoj Kumar Jain, Head-Commodity and Currency Research at Prithvi Finmart, suggests selling gold below Rs 52,500 for a target of Rs 52,080, with a stop loss at Rs 52,720.
Crude oil prices fell on Tuesday after economic data from China prompted fresh global recession worries. Brent crude futures slipped 2.4 percent to $92.8 a barrel and West Texas Intermediate (WTI) futures were 1.5 percent down to $88.1 a barrel.
Indian equity benchmarks opened in green mirroring largely positive cues from global markets.
The dollar index — which gauges the strength in the greenback against six peers — remained flatish.
