Gold futures decline on global cues, US Fed's tapering concerns

Mumbai, July 16 Domestic futures of gold declined on Friday, tracking decline in the global prices, along with concerns of tapering by the US Federal Reserve.

The August contract of gold on the Multi-Commodity Exchange was at Rs 48,260.00 per 10 gram, lower by Rs 140, or 0.29 per cent, from its previous close.

HDFC Securities' Senior Analyst for Commodities, Tapan Patel, noted that gold prices traded weak with COMEX spot gold prices were trading down near $1,823 per ounce on Friday.

"Gold prices traded above $1,820 with gold prices are set to report fourth straight weekly gain on central bank comments and mixed economic data. The worries over spreading of the Delta variant also supported bullion prices to trade higher this week. Gold prices witnessed some correction on Friday on Fed tapering concerns," he said.

"We expect gold prices to trade sideways to down for the day with COMEX gold support at $1,810 and resistance at $1,840 per ounce. MCX Gold August support lies at Rs 48,000 and resistance at Rs 48,500 per 10 gram," Patel added.

Similarly, silver futures also declined during the day.

On the MCX, the September contract of silver was at Rs 69,357.00 per kg, lower by Rs 324, or 0.46 per cent, from its previous close.