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Gold prices in India extended their recent slide, tracking weak global cues. On MCX, gold futures were down 0.55% to 47660 per 10 gram, down about 2,000 from their last Tuesday's high of   49,340.  Silver was also under pressure and was down 1.8% to 63,411 per kg. 

In global markets, gold eased below $1,800 as the dollar hit 16-month highs. Yields firmed on expectations that US interest rates will rise faster than expected after renomination of Federal Reserve Chairman Jerome Powell. Spot gold was down 0.4% at $1,797.16 per ounce.

COMEX gold rallied more than $100 from the lows set in early November and tested a June high of near $1880/oz last week but it failed to hold on to the gains. 

Gold rallied sharply in last few days as rising inflationary pressure globally increased its appeal as an inflation hedge while central banks maintained wait and watch approach. Gold however lost momentum as monetary tightening debate intensified and US dollar continued to set fresh highs. Gold’s momentum has come to a halt and we may see volatility persisting until next Fed meeting in mid-December and market players may look at economic data and Fed comments to get more clarity on central bank stance," Kotak Securities said in a recent note. 

Though gold is considered a hedge against inflation and other uncertainties, a likely hike in rates to rein in rising consumer prices would increase the opportunity cost of holding non-yielding bullion.

Price pressure has been rising in US and globally for last few months however this failed to lend much support to gold price as market players remain worried that central banks may start monetary tightening to limit rising prices.

Strength in the U.S. currency dims the metal's appeal for overseas buyers. Among other precious metals, spot silver fell 1.1% to $23.89 per ounce, platinum was down 0.8% at $1,003.59, and palladium shed 0.4% to $1,946.38. (With Agency Inputs)

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