NEW DELHI: Gold prices edged lower on Thursday in domestic markets, tracking global cues as the dollar held firm. A top US Federal Reserve official signalled the possibility of bringing forward policy tightening.

Gold futures on

were down 0.09 per cent, or Rs 45, at Rs 47,847 per 10 grams. Silver futures traded 0.25 per cent, or Rs 171 lower, at Rs 67,430 per kg.

Higher interest rates raise the opportunity cost of holding non-interest bearing gold. The dollar index was firm on Fed’s hawkish comments, making gold more expensive for holders of other currencies.

Ravindra Rao, Head of Commodity Research at Kotak Securities, said gold is pressurized by the firm US dollar amid some hawkish Fed comments. Weaker investor interest and slack retail buying has also put pressure on the price.

“Supporting price is a safe haven buying amid rising virus cases, uneven economic recovery and concerns about Chinese economy. Gold may continue to waver amid choppy equities. However, increasing economic uncertainty may keep prices supported,” he added.

In the spot market, highest purity gold was sold at Rs 48,050 per 10 grams, while silver was priced at Rs 68,241 per kg on Thursday, according to the Indian Bullion and Jewellers Association.

Asia Pacific investors are trying to strike a balance between weak payrolls data and hawkish comments from Fed officials.

Trading strategy
“We expect gold prices to trade sideways to up for the day with COMEX spot gold support at $1800 and resistance at $1820 per ounce. MCX Gold October support lies at Rs 47,700 and resistance at Rs 48,200 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.

Global markets
Spot gold fell 0.1% to $1,809.96 per ounce by 0255 GMT, while US gold futures were down 0.1% at $1,812.80.

Silver was little changed at $25.34 per ounce after hitting a near three-week peak on Wednesday.

earlier hit an over seven-month low of $1,005.50 and was last down 1.5% at $1,010.51. Palladium eased 0.1% to $2,644.58.