Gold prices traded firm with COMEX spot gold prices were trading 0.28% up to $1739 per ounce on Wednesday. Gold October future contract at MCX were trading 0.26% higher at Rs. 46077 per 10 grams by noon session on rupee depreciation.
Gold prices pared some of previous losses on Wednesday after falling to seven week low. Gold prices traded under pressure with dollar rallying to 10 months high while US bond yields rose to three month high. The rally in US bond yields is the downside risk for bullion prices. The 10 year US Treasury yields rose to 1.51% on interest rate speculation. The US FED has signalled stimulus unwinding by mid-2022 which has triggered selling in precious metals.
We expect gold prices to trade sideways to down with COMEX spot gold resistance at $1752 and support at $1730 per ounce. MCX Gold October support lies at Rs. 45800 and resistance at Rs.46300 per 10 gram.