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Gold prices today rise to 2-week high, at around 47,400 per 10 gram

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Gold prices in India were at a two-week high on the back of positive international cues and a subdued dollar. On the Multi Commodity Exchange (MCX), August gold contracts rose 0.34 per cent higher to 47,459 per 10 gram at 9:40am. September silver futures were trading 0.37 per cent higher at 70,254 for every kilogr. Gold prices moved above the 47,000 level on July 2.

Domestic brokerage Geojit said for gold, “breaking either the sides of $1745-1800 regions would suggest fresh short term direction to the commodity. Anyhow, prices have more room to break $1800 and edge prices higher for the day,” according to Live Mint.

In the international market, gold prices touched a new high in nearly three weeks. Spot gold was up 0.4 per cent at $1,798.46 per ounce, as of 0315 GMT, its highest since June 17. According to Reuters, US gold futures rose 0.8 per cent to $1,798.10 per ounce. The dollar lowered 0.1 per cent, moving further away from a three-month high hit last week.

“It’s mainly a weakening US dollar that is boosting gold prices. Gold was sold down heavily after June FOMC meeting and now that expectations have been priced in, buyers are back to the market,” Margaret Yang, a strategist at DailyFX, was quoted as saying by Reuters. “However, gold’s upside potential might be limited against the backdrop of global hawkish turn in monetary policies. Don’t think prices will recover back to the early June levels anytime soon,” Yang said.

All eyes are on minutes from the Fed’s latest meeting due on Wednesday after a hawkish tilt from the US central bank last month. Policymakers’ projected a start to rate hikes in 2023, sending gold prices below $1,800 level.

“Gold prices may be able to hold onto recent gains but staying above $1,800 resistance may not be in the traders’ radar until the latest minutes of the Fed’s meeting is released,” Avtar Sandu, senior commodities manager at Phillip Futures, said in a note, according to Reuters.

(With agency inputs)

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