NEW DELHI: Gold prices were steady on Tuesday as investors turned cautious ahead of this week’s US Federal Reserve meeting outcome for clues on when the central bank might rein in its easy monetary policies.

Gold futures on MCX were down merely 0.03 per cent, or Rs 12, at Rs 47,449 per 10 gram. Silver futures traded 0.22 per cent, or Rs 151, lower at 66,970 per kg.

Gold prices in India are mirroring trends in the international markets. Gold prices fell to the lowest levels in three weeks despite a weaker dollar on Fed tapering expectations.

“Gold prices traded steady with COMEX Spot gold prices trading near $1,799 per ounce in morning trade. The yellow metal fell below $1,800 as traders and investors are being cautious ahead of US FOMC meeting,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

In the spot market, highest purity gold was sold at Rs 47,949 per 10 gram while silver was priced at Rs 67,555 per kg on Monday, according to the Indian Bullion and Jewellers Association.

The prices of physical gold and silver have remained mostly flat in the last one month. However, analysts expect that demand is likely to move northwards in coming weeks.

Net gold imports of gold into the world’s biggest bullion consumer China via Hong Kong jumped nearly 42 per cent last month after a slump in May, data showed.

Trading strategy
“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,790 per ounce and resistance at $1,810 per ounce. MCX Gold August support lies at Rs 47,100 and resistance at Rs 47,700 per 10 gram,” said Patel of HDFC Securities.

Global markets
Spot gold was flat at $1,798.61 per ounce, as of 0108 GMT. US gold futures fell 0.1% to $1,797.80 per ounce.

Silver fell 0.1% to $25.14 per ounce, palladium was down 0.4% at $2,647.85, while platinum was flat at $1,063.93.