Domestic gold prices extended gains on Wednesday amid negative trends in global markets. Global gold benchmarks remained largely unchanged.

MCX gold October futures climbed 0.2 percent to touch the intraday high of Rs 51,497 per 10 grams. White metal future, fell 0.4 percent to Rs 54,959 per kilogram.

Ravindra Rao, VP- Head Commodity Research at Kotak Securities said, “Weighing on price are expectations that Fed Chairman, in his speech at the Jackson Hole Symposium, may reaffirm Fed’s monetary tightening outlook. Continuing ETF outflows also show lack of investor interest. Gold has corrected sharply in last few days but we are now seeing some pause in $1750/oz and we may see some consolidation ahead of Fed’s Chairman’s speech.”

Manoj Kumar Jain, Head-Commodity and Currency Research at Prithvi Finmart, suggests buying gold on dips around Rs 51,200 for the target of Rs 51,650 with a stop loss at Rs 51,050 .

Indian equity benchmarks opened in red in choppy trade amid negative cues. The dollar index — which gauges the strength in the greenback against six peers — climbed 0.2 percent.

Source: Hellenic Shipping News