Global gold prices today declined below the $1,600 an ounce mark for the first time since January. The last time it went below the the strong resistance level was on January 5, this year when gold prices closed at $1,597.70 an ounce.
COMEX benchmark gold contract was trading at $1,587.40 an ounce today mainly affected by a sell off across markets pressurised by the looming Eurozone debt crisis.
This level has not been witnessed by the markets since January 3 when gold prices declined to close at a low of $1,566 an ounce.
"The recent France and Greece elections rattled the markets and triggered a sell off across markets," Madhavi Mehta, analyst with Kotak Commodity Services, said.
In the domestic markets, gold prices also declined tracking international markets, but "the upside was capped by the weakness in the rupee," she said.
End of marriage season also pulled the yellow metal lower, analysts said.
MCX gold was trading at $28,524, down 0.44% or Rs 127 from previous close.
Kotak sees international gold trading within the range of $1,580-1,620 today, while the precious metal may find support at $1,565 in the coming week and face resistance at $1,630 an ounce, in case a pullback in prices is seen.
In the domestic markets, gold may trade within the range of Rs 28,400-28,700 per 10 gm, while the metal may find support at Rs 28,000 per 10 gm and face resistance at Rs 29,100 in the week, said Kotak.