MCX gold Aug contract may trade sideways

NEW DELHI-INDIA (July 30)  A spot gold price decreased by 0.47% in the yesterday's trading session on the back of strength in dollar index coupled with mixed global market sentiments. Further, market participants were caution ahead of US Federal Reserve policy meeting, which kept prices under pressure. Moreover, decline in SPDR gold trust holding added downside pressure on the prices. In the Indian markets, gold prices rose by 2.34 % on the back of rise in physical demand coupled with depreciation in the Indian Rupee. Gold prices touched an intraday high of 28,444/10gms and closed at 28,277/10gms.Commenting on the outlook, the broking firm Sushil Finance said, ''We expect spot gold prices to trade on the negative note on the back of strength in Dollar Index (DX). Further, market participants are cautious ahead of US Federal Reserve policy meeting, which may keep prices under pressure. Additionally, mixed global market sentiments coupled with decline in SPDR gold trust holding may add downside pressure on the prices. In the Indian markets, depreciation in the Indian Rupee along with the rise in physical demand may cushion sharp downside in the prices or even reversal may be seen. MCX gold August contract may trade sideways with support at 27,900/ 28,100 and resistance placed at Rs 28,500/28,700.''