Expect gold to trade weaker till the Jackson Hole event slated on Friday, said Pritam Patnaik, Head - Commodities, HNI & NRI Acquisitions, Axis Securities.

Gold prices edged higher on Tuesday in the international markets after hitting a near one-month low in the previous session, helped by a slight pullback in the dollar although lingering worries over further aggressive US interest rate hikes kept gains in check.

Spot gold was up 0.2% at $1,738.90 per ounce, as of 0128 GMT, after hitting its lowest since July 27 at $1,727.01 on Monday.

At 9.44am, gold contracts were trading 0.2 percent higher on the Multi-Commodity Exchange (MCX) at Rs 51,174 per 10 grams and silver shed 0.38 per cent at Rs 54,781 a kilogram.

Gold prices continued their southward movement thanks to a stronger US dollar and rising 10 yr bond yields. Gold prices have been correcting in the last seven trading sessions, as the US dollar hit its 6-week high levels, aided by fears of recession and hawkish US Fed. With Russia planning a fresh series of the aggressive campaign in Ukraine, US dollar will attract further safe heaven flows, leading to additional pressure on gold. Expect gold to trade weaker till the Jackson Hole event slated on Friday.

Gold and silver extended its fall on Monday after the dollar index hit fresh six week highs. Both the precious metals settled on a weaker note in the international markets. Gold December futures contract settled at $1748.40 per troy ounce with a loss of 0.68% and silver September futures contract settled at $18.88 per troy ounce with a loss of 0.46%. Both the precious metals were also settled on a weaker note in the domestic markets. Gold October futures contract settled at Rs 51163 per 10 gram with a loss of 0.61% and silver September futures contract settled at Rs 54992 per one kilogram with a loss of 0.91%.

We expect gold to hold its support level of $1735 per troy ounce in today’s session. Gold has support at $1735-1722 per troy ounce and resistance at $1758-1772 per troy ounce while silver has support at $18.70-18.45 per troy ounce and resistance at $19.10-19.35 per troy ounce. At MCX, gold has support at Rs 51000-50880 and resistance at Rs 51330-51500 while silver has support at Rs 54650-54400 and resistance at Rs 55300-55550. We suggest buying gold around Rs 51050 with a stop loss of Rs 50880 on a daily closing basis for target of Rs 51350.