Gold prices edged up in India markets while silver rates also edged up. On MCX, August gold futures contracts were up 0.03% to 34,719 per 10 gram after hitting a record high of 35,409 earlier this month. September silver futures on MCX were ruling at 0.22% higher at 41,332 per kg. In domestic spot markets, gold prices moved higher, rising 160 to 35,880 per 10 gram in Delhi while silver also firmed up by 150 to 42,050 per kg.

In Delhi, gold of 99.9% and 99.5% purity rose 160 each to 35,880 per 10 grams and 35,710 per 10 grams, respectively.

In global markets, gold prices remained steady ahead of this week's US Federal Reserve meeting. Spot gold edged up 0.1% to $1,420.10 per ounce.

Though the US Fed is expected to widely cut interest rate by 25 basis points, gold traders will look beyond to the central bank's guidance on monetary policy for the rest of the year. A 50-basis-point from the Fed tomorrow could give a near-term boost to gold prices, say analysts. Lower interest rates boost the appeal of non-interest yielding asset classes like gold.

On the other hand, if Fed chair Jerome Powell makes no mention of a cycle of rate cuts, gold prices could come under pressure, say analysts. "We would not see this as a trend reversal but as an attractive buying opportunity," analysts at Commerzbank said in a note, according to Reuters.

On the downside, gold has support at $1,400, say analysts.

Gold prices are up 10% this year and many analysts still remain bullish. "We all know gold is a classic hedge (doing very well when the world is in crisis) and in good times, demand can perk up – and in addition, we now have dollar weakness staring us in the face and which may spur rallies in the precious metal with the slightest hint of the US economy slowing down," says Sandip Raichura of Prabhudas Lilladher.

Back in India, record gold prices have hurt demand and have seen higher. In Budget, the government increased import duty on gold to 12.5% from 10%. (With Agency Inputs)

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