Gold prices in India traded flat on the Multi Commodity Exchange (MCX) Friday after witnessing a 1 percent fall in the previous session. Rebound in dollar index limited gains in the yellow metal, analysts said.
At 11:05 am, gold futures for December delivery gained 0.06 percent to Rs 50,794 per 10 grams as against the previous close of Rs 50,766 and opening price of Rs 50,865 on the MCX. Silver futures traded 0.16 percent lower at Rs 62,515 per kg. The prices opened at Rs 62,658 as compared to the previous close of Rs 62,615 per kg.
“Gold prices are expected to trade with a negative bias amid a recovery in dollar index. Data points in the US remained supportive for dollar along with uncertainty over the stimulus package, pressruring the yellow metal,” said Ajay Kedia, director, Kedia Commodity Comtrade.
International gold edged up on Friday on hopes that a US stimulus package would eventually be passed, boosting the metal's appeal as an inflation hedge, although a stronger dollar capped gains, Reuters reported.
Spot gold rose 0.1 percent to $1,906.29 per ounce, after slipping more than 1 percent in the previous session. Bullion is up 0.4 percent this week. US gold futures rose 0.2 percent to $1,907.50 per ounce.
However, strength in the dollar index against a basket of major currencies limited gains in gold prices.
“On MCX, gold may find support at Rs 50,380 and resistance is placed at Rs 51,240 level. Silver may see support at Rs 60,500 and resistance at Rs 63,800 level,” Kedia added.
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