Gold prices drift lower on better-than-expected US economic data

New Delhi, Gold price declined by Rs 100 to Rs 59,600 per 10 gram in the national capital on Wednesday amid a fall in prices of the precious metal globally, according to HDFC Securities. In the previous trade, the yellow metal had ended at Rs 59,700 per 10 gram.

However, silver prices rose by Rs 200 to Rs 73,100 per kilogram. In the overseas market, gold was trading lower at USD 1,904 per ounce, while silver was up at USD 22.70 per ounce.

Gold prices drifted lower to linger around the support of USD 1,900 after better-than-expected US economic data further dented gold's investment appeal, Mohammed Imran, Research Analyst at Sharekhan by BNP Paribas, said.

“COMEX Gold prices edged down to the lowest since early July, as traders weighed prospects for the Federal Reserve to keep monetary policy tight, amid the backdrop of a hotter than expected US retail sales data. Consumer spending remained strong in July despite high prices and borrowing costs, another sign the US economy is doing better compared to other major economies," said Ravindra Rao, CMT, EPAT, VP – head commodity research, Kotak Securities.

Investors are now awaiting the release of the minutes of the US Fed's July meeting, due later on Wednesday, which may reveal the central bank's willingness to raise interest rates, said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities.

"Despite expectations of slightly dovish minutes, we expect gold prices to remain subdued amid robust US economic data and weak Chinese sentiments bolstering the greenback,” said Rao.

(With inputs from PTI)