MCX bullion seen down

MCX gold and silver futures are expected to dip further from current levels in line with COMEX bullion, which has been correcting since Tuesday after the US PPI data showed prices paid to producers dropped unexpectedly by 0.1 per cent in December, analysts said.

There are also expectations that the US CPI data to be released on Wednesday would show that retail prices rose at a slower pace in December, analysts said, adding that was among the main reasons for the correction in gold.

The sell-off in financial markets is also having an impact on gold prices, analysts added.

"Our support for COMEX gold remains at $872 an ounce as COMEX gold February had breached $880 and tested the $878 level. The correction was fuelled by the London AM fix being lower by $32 at $881 an ounce," said Debjyoti Chatterjee, assistant vice president, Mape Admisi Commodities.

At 6 pm, gold for February on COMEX was at $885.40 an ounce, down $17.30 from its previous close, while COMEX silver for March delivery was at $15.78 an ounce, down 45 cents.

MCX prices move in tandem with COMEX prices. At 6.15 pm, gold for February delivery on MCX was at Rs 11,218 per 10 gm, down Rs 153 from its previous close, while silver March was at Rs 20,593 per 1 kg, down Rs 304.