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Precious metal rates in India remained subdued amid weak global trend. On MCX, gold futures were down 0.2% to 51,322 per 10 gram, the sixth decline in seven sessions, while silver dropped below the key level of 55,000 per kg. In global markets, the yellow metal edged lower to $1,746 per ounce amid a firm US dollar. Traders remained cautious ahead of ahead of central bankers' Jackson Hole symposium due later this week where Fed chief Jerome Powell will also be speaking. 

A strong dollar makes gold more expensive for buyers holding other currencies. Among other metals, spot silver fell 0.6% to $19.05 per ounce, platinum slipped 0.4% to $875.95, while palladium eased 0.2% to $1,976.28.

"COMEX gold trades marginally lower weighed down by stable US dollar and bond yields as market players counter hawkish comments from Fed officials against disappointing US economic data. Gold is also pressurized by continuing ETF outflows and concerns about consumer demand. However, supporting price is growth worries amid slower economic activity and power crisis in Europe and China and increased geopolitical tensions," said Gold and Crude prices from Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

"Gold has retreated from recent highs but is consolidating near $1750/oz as market players position for Fed Chairman’s comments at the Jackson Hole Symposium. We may see choppy trade in the near term but general bias still remains weak owing to Fed’s emphasis on continuing rate hikes," he added. 

Gold prices have been under pressure after some Fed officials reiterated the US central bank's focus on controlling inflation.  The U.S. central bank has raised its benchmark overnight interest rate by 225 basis points in total since March to contain inflationary pressures and has noted that further tightening would depend on economic data points.

Higher interest rates increase the opportunity cost of holding non-yielding bullion.

ETF flows into gold has also been weak. The holdings of holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.3% to 984.38 tonnes on Tuesday. 

“While gold continues to reflect trend in the US dollar, gold is gaining some support from global growth worries amid mixed economic data from major economies. Inflation concerns are also high amid rising power prices in Europe and Asia. Increased US-China tensions over Taiwan has also increased gold’s safe haven appeal. However, weighing on price is monetary tightening stance of Fed and other central banks, weaker investor interest and concerns about consumer demand in India and China," Kotak Securities said in a note. 

(With Agency Inputs)

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