Gold prices had fallen to near 12-month lows last week

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Gold prices struggled in Indian markets amid weak global cues. On MCX, gold futures were flat at ₹44,930 per 10 gram while silver dipped 0.2% to ₹67,510 per kg. In the previous session, gold had edged 0.35% higher while silver rose 1.3%. In global markets, gold prices were flat today at $1,732.32 per ounce ahead of the the outcome of outcome of a U.S. Federal Reserve policy meeting. A rally in riskier assets like equities took some sheen off the precious metal.

“Expect a choppy trade inside $1700-1735 levels initially and breaking any of the sides would suggest directional move for the day. Anyhow, immediate and strong resistance is seen $1775. Likewise, major downside is seen at $1660,” domestic brokerage Geojit said in a note.

“Gold has taken support near $1,700 although investment demand has fallen. We expect the bullion commodities to remain range bound ahead of scheduled monetary policy meet of Fed (BoE on Thursday & BOJ on Friday). Since Gold-backed ETFs have lost shine, we expect a limited upside in the yellow metal. ₹45,000 – 45,200 are good resistances,” said Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers.

Among other precious metals, silver fell 0.2% to $26.22 while platinum was down 0.1% at $1,211.91.

According to analysts, Fed Chair Jerome Powell is most likely to reaffirm his no-tightening policy stance at the policy meeting. Also later this week, Bank of England and Bank of Japan are set to announce their rate decision.

Outflows from ETFs continued to put pressure on gold. The holdings of world’s biggest gold-backed exchange-traded fund fell 0.2% to 1,050.32 tonnes on Monday from 1,052.07 tonnes on Friday. Elsewhere, Bitcoin slid below $54,000, after a weekend rally above $61,000. (With Agency Inputs)