The broader trend on COMEX could be in the range of $1920-1975 and on domestic front prices could hover in the range of Rs 51,800- 52,700, said Damani.
Gold prices declined Rs 1,075 to 52,319 per 10 gram in the Mumbai market on a strong dollar and weak global cues. Prices slipped after US Federal Reserve warned that economic recovery faced an uncertain path.
Fed policymakers are considering tweaks to monetary policy that could result in the US central bank sticking with aggressive stimulus measures far longer than under its previous statement, minutes from their last policy meeting showed.
The US Dollar index was trading moderately higher at 93.04 after gaining 0.7 percent on August 19.
“Although Fed's minutes has again triggered selling in the yellow metal, buying might re-emerge at lower levels as the undertone in US Dollar index is still bearish until it is below $94.50”, Ravindra Rao, VP- Head Commodity Research at Kotak Securities, said.
The rate of 10 gram 18, 22 and 24-carat gold in Mumbai was Rs 39,239, Rs 47,924 and Rs 52,319, respectively, plus 3 percent GST.
Navneet Damani, Vice President, Motilal Oswal, expects the yellow metal to continue to consolidate amid the rise in yields and the Dollar Index. "The broader trend on COMEX could be in the range of $1,920-1,975 per troy ounce. On the domestic front, prices could hover in the range of Rs 51,800- 52,700 per 10 gm."
The gold-to-silver ratio currently stands at 79.08 to 1, which means the amount of silver required to buy one ounce of gold.
Silver prices fell Rs 919 to Rs 66,153 per kg from its closing on August 19.
In the futures market, gold touched an intraday high of Rs 52,550 and a low of Rs 51,721 on the Multi-Commodity Exchange (MCX). For the October series, the yellow metal touched a low of Rs 45,596 and a high of Rs 56,191.
Gold futures for October delivery slipped Rs 713, or 1.35 percent, at Rs 51,909 per 10 gram in evening trade on a business turnover of 15,492 lots. The same for December delivery edged lower Rs 679, or 1.29 percent, at Rs 52,124 on a business turnover of 2,906 lots.
The value of the October and December contracts traded so far is Rs 5,049.68 crore and Rs 295.71 crore, respectively.
Similarly, Gold Mini contract for September eased Rs 744, or 1.41 percent, at Rs 52,080 on a business turnover of 12,634 lots.
At 1309 (GMT), spot gold was up $1.34 at $1,930.30 an ounce in London trading.
For all commodities related news, click here