Gold traded lower on MCX on July 29, reflecting caution ahead of the US Federal Reserve's monetary policy decision. August gold futures fell 0.25% to Rs. 1,41,275. September silver futures rose 0.32% to Rs. 2,16,530. Meanwhile, Brent crude futures gained 4.27% to $87.68 per barrel. US West Texas Intermediate (WTI) edged higher by 4.21% to $82.60 per barrel.
According to the CME FedWatch Tool, traders now expect a 76% chance of a September rate hike by the US Federal Reserve.
24K gold fell by Rs. 86 to Rs. 1,43,510 per 10 grams, while 22K gold also declined by Rs. 60 to Rs. 1,31,550. By city, Mumbai and Kolkata mirrored prices at Rs. 1,43,510, while Delhi was at Rs. 1,43,660, and Chennai at Rs. 1,43,510.
US gold prices were largely steady on Wednesday as investors await the US Federal Reserve's policy decision and comments from Fed Chair Kevin Warsh for clues on inflation and the interest rate outlook.
Spot gold was little changed at $4,029.08 per ounce. US gold futures for August delivery dipped 0.2% to $4,028.10.
Spot silver gained 0.9% to $57.65 per ounce and platinum inched 0.3% higher to $1,600.40. Palladium fell 0.7% to $1,261.
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"Gold is very much connected to today's FOMC meeting.... The scenario that may see a potential reversal of the recent bearish bias in gold prices will be the Fed turning to a less hawkish rhetoric," said Kelvin Wong, a senior market analyst at OANDA.
Internationally, gold has support at $4,010 and $3,974 and resistance at $4,070 and $4,110 per troy ounce, while silver has support at $56.80 and $56 and resistance at $58.40 and 59.10 per troy ounce.
On the MCX, gold has support at Rs. 1,40,800 and Rs. 1,40,000 and resistance is at Rs. 1,42,200 and Rs. 1,43,100, while silver has support at Rs. 2,14,000 and Rs. 2,12,200 and resistance is at Rs. 2,17,700 and Rs. 2,20,000