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Gold prices were weak today in Indian markets after a sharp fall in the previous session. On MCX, gold futures were down 0.04% to near one-month low of 46,878 while silver edged 0.28% higher to 63,468 per kg. In the previous session, gold had slumped 0.77% or about 400 while silver had dipped 0.5%. 

In global markets, gold rates were down below key $1,800 level as investors remained cautious ahead of next week's US Federal Reserve meeting. Spot gold fell 0.6% to $1,793.20 per ounce despite a subdued US dollar. The Fed's two-day policy meeting is due on September 21-22.  Analysts expect the US central bank to provide guidance on when it will start withdrawing its asset purchases and on eventual interest rate hike.

“If the support of $1770 holds, chances of recovery upticks in gold are still on cards. A direct drop below the same would call for corrective selling," domestic brokerage Geojit said in a note. 

Gold had hit a one-week high following U.S. consumer price index data earlier this week but gave up most of its gains as US Treasury yields ticked higher.

ETF flows remained weak. The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.2% to 998.46 tonnes on Wednesday.

Among other precious metals, silver was unchanged at $23.81 per ounce while platinum was flat at $947.39. 

For silver, “a mild positive bias is likely as long as prices stay above $23.40. However, major rallies are seen only a close above $24.60," Geojit said.

“While inflation concerns are picking up, pace of growth is slowing down. Adding to challenges to global economy are persisting virus risks, geopolitical tensions and China’s regulatory crackdown on big tech firms. WHO’s latest report shows some stability in virus situation globally but some parts of China have seen a resurgence in cases," says Kotak Securities in a report. 

“Commodities may witness choppy trade amid continuing debate about Fed’s monetary policy. A slight easing in consumer prices eased market nerves about Fed’s tightening but debate may continue ahead of next week’s meeting. We however expect US dollar to remain under pressure and this may keep commodity prices supported," the brokerage said. 

(With Agency Inputs)

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