Gold futures for October delivery rose 0.29 per cent to Rs 51,690 per 10 grams. Silver futures for September delivery were trading at Rs 56,716 per 1 kg, down 0.35 per cent.
In the international market, gold was quoting lower at $1,772 per ounce while silver was flat at $19.96 per ounce. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.32 per cent to 989.01 tonnes on Wednesday.
“FOMC minutes showed that the US central bank wants to continue with rate hikes to control inflation but is also wary about overtightening and its impact on economic growth. Fed’s indecisiveness means that market players may look at economic numbers and central bank comments to determine Fed’s next move,” said Ravindra Rao of Kotak Securities.
Gold may remain volatile as support from global growth worries, geopolitical issues and inflation concerns is countered by weaker investor interest and concerns about consumer demand, he said.
“However, with the Fed expected to continue with rate hikes, the US dollar may remain supported and this may pressurise gold,” Rao added.
The dollar index hovered near a three-week high hit earlier this week, making gold more expensive for buyers holding other currencies.
“Gold prices have kept a steady trading range on mixed global cues and firm dollar,” Tapan Patel, Senior Analyst for Commodities at
Securities told PTI.
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