Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Tuesday amid muted trend in international spot prices as investors opted profit booking at higher levels, analysts said.
At 11:35 am, gold futures for August delivery fell 0.36 percent to Rs 48,971 per 10 grams as against the previous close of Rs 49,148 and opening price of Rs 49,050 on the MCX. Silver futures traded 1.24 percent lower at Rs 52,390 per kg. The prices opened at Rs 52,487 as compared to the previous close of Rs 53,048 per kg.
“Gold price fell on profit booking after a recent uptick. Concerns over coronavirus and impending lockdown are still supporting prices,” said Ajay Kedia, director, Kedia Commodity Comtrade.
International gold prices slipped below the key $1,800 level on Tuesday, as the US dollar strengthened, although worries over surging coronavirus cases globally and Sino-US tensions put a floor under bullion prices, Reuters reported.
Spot gold fell 0.3 percent to $1,797.39 per ounce. US gold futures declined 0.8 percent to $1,799.60.
Analysts expect gold to trade rangebound amid mixed cues.
“Gold prices failed to hold above $1,800 level. We expect a choppy trade in the range of $1,775 - 1,820 levels,” Kedia added.
On MCX, Kedia suggests buying gold on dips as the sentiment remains positive for the yellow metal.
“Gold prices may face resistance at Rs 49,350 level while support is placed at Rs 48,550 level,” Kedia said.
Meanwhile, silver is also expected to rise going ahead. "We may see further upside towards Rs 53,500 unless price breaches Rs 51,000 level on MCX," he added.
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