NEW DELHI: Gold prices declined in futures trade on Tuesday, tracking weak trends in overseas markets, while a fall in demand by jewellers at spot markets further weighed on the yellow metal.
In global markets, Gold prices fell as the dollar strengthened and some investors locked in profits ahead of the US Federal Reserve meeting next week.
Under normal circumstances, gold and dollar share an inverse relationship. Since international gold is dollar-denominated, a rise in the dollar drags down gold prices and vice versa.
Silver also declined on a slump in demand by industrial units and coin makers at the spot markets.
Around 10:30 am, MCX Gold traded at Rs 34,943 per 10 grams, down by Rs 189, while MCX Silver traded Rs 40,895 a kilo, down by Rs 386.
As per brokerage
SMC Global Securities, bullion counter may trade on a weaker path.
"Gold can dip lower towards Rs 34,750, facing resistance near Rs 35,200 and silver can slip lower towards Rs 40,700 with resistance near Rs 41,300," said the brokerage.