NEW DELHI: Gold prices slipped lower on Friday in domestic markets, following the global footsteps. The US dollar held firm as more Federal Reserve officials signalled the possibility of a sooner-than-expected policy tightening.

Gold futures on

were down 0.22 per cent or Rs 105 at Rs 47,498 per 10 grams. Silver futures traded 0.39 per cent or Rs 258 lower at Rs 66,740 per kg.

According to Reuters, India’s gold imports in July more than doubled from a year earlier as demand improved after states lifted lockdown restrictions.

The dollar index was up, making gold more expensive for holders of other currencies. Investors are now focused on the US non-farm payrolls report due later in the day.

“The yellow metal witnessed selling as US bond yields rose and amid hawkish tone from the US Fed. The 10-year US Treasury yields rose. The traders and investors will eye for key US payroll data on Friday evening,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

In the spot market, highest purity gold was sold at Rs 48,006 per 10 grams, while silver was priced at Rs 67,596 per kg on Thursday, according to the Indian Bullion and Jewellers Association.

Trading strategy

“We expect gold prices to trade sideways to down for the day with COMEX Spot gold support at $1,790 and resistance at $1,812 per ounce. MCX Gold October support lies at Rs 47,300 and resistance at Rs 47,900 per 10 gram,” added Patel.

Global markets

Spot gold fell 0.1% to $1,802.05 per ounce by 0104 GMT. US gold futures eased 0.3% to $1,804.10.

Silver rose 0.1% to $25.15 per ounce and palladium was flat at $2,649.45. Platinum hit an over seven-month low of $998 and was last down 0.6% at $999.49.