Gold traded lower on MCX on August 25 amid a rise in the US dollar and bond yields, ahead of US inflation data and the Jackson Hole Symposium this week. August gold futures fell 0.11% to Rs. 1,63,044, and September silver futures declined 0.52% to Rs. 2,42,949.
Meanwhile, Brent crude futures rose 0.23% to USD 92.38 per barrel. US West Texas Intermediate (WTI) edged higher by 0.40% to USD 85.35 per barrel.
The CME FedWatch Tool indicates markets are currently pricing in a 58.1% probability that the Fed will keep rates unchanged and a 41.9% chance of a rate hike in September.
24K gold fell by Rs. 22 to Rs. 1,63,750 per 10 grams, while 22K gold also declined by Rs. 20 to Rs. 1,50,100. By city, Mumbai and Kolkata mirrored prices at Rs. 1,63,750, while Delhi was at Rs. 1,63,900 and Chennai at Rs. 1,63,750.
US gold prices declined on Tuesday after reaching their highest levels in more than three months, while investor focus shifted to upcoming US inflation data and a speech later this week by Federal Reserve Chair Kevin Warsh.
Spot gold was down 0.2% at USD 4,640.39 per ounce. US gold futures steadied at USD 4,696.00.
Spot silver fell 1.3% to USD 68.01 per ounce, platinum lost 1.2% to USD 1,853.85 and palladium slipped nearly 1% to USD 1,345.26.
Also Read: Why Gold Prices Rise During Economic Uncertainty: Key Factors Investors Should Know
"Looking ahead, we expect dips in gold to be well-supported by buyers looking for gold to make its way towards the next upside resistance at USD 4,900/USD 5,000," IG market analyst Tony Sycamore said.
Internationally, gold has support at USD 4,665 and USD 4,610, while resistance is at USD 4,740 and USD 4,770 per troy ounce, and silver has support at USD 67.70 and USD 66.60, while resistance is at USD 69.80 and USD 71 per troy ounce.
MCX gold has support at Rs. 1,62,200 and Rs. 1,61,000, and resistance is at Rs. 1,64,000 and Rs. 1,65,150, while silver has support at Rs. 2,41,400 and Rs. 2,39,100 and resistance at Rs. 2,47,000 and Rs. 2,50,000.