Gold for August delivery little changed, tracking global rates

MUMBAI: Gold for August delivery, excluding 1% VAT, was flat at Rs 27,633 per 10 gm in early trade tracking the international price, which fell below $1,300 a troy ounce over fears of a stronger dollar, following US Federal Reserve chief Janet Yellen’s testimony to Congress that interest rates could be raised sooner than markets anticipated.

Last week gold closed at $1,337 an ounce, its sixth straight weekly gain. Analysts who track the metal say they will wait for the weekly Friday close before making any forecasts.

“Gold had gained to over Rs 28,000 and has now corrected to 27k levels. However, some buying at the 27k levels indicates that markets may not fall sharply from here. A better picture on sentiment and further price direction will emerge at the weekend,” said Viral Shah, vice president commodities, Geojit Comtrade.