Gold prices in India traded flat on the Multi Commodity Exchange (MCX) Tuesday tracking gains in international spot prices on short-covering after the prices plunged over 2 percent in the previous session.

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At 10:55 am, gold futures for October delivery inched higher by 0.03 percent to Rs 50,484 per 10 grams as against the previous close of Rs 50,471 and opening price of Rs 50,560 on the MCX. Silver futures traded 0.11 percent lower at Rs 61,251 per kg. The prices opened at Rs 61,869 as compared to the previous close of Rs 61,316 per kg.

Bullion prices fell 2.36 percent to settle at $1911.60 per ounce and silver plunged 9.53 percent to close at $24.39 per ounce on Monday after the US dollar soared to an almost six-week high due to growing safe-haven bids, amid sharp losses in the stock markets pushing investors away from precious metals.

In the domestic market, gold declined 2.41 percent to end at 50,471 per 10 gram while silver lost 9.67 percent to settle at 61,316 per kg.

“The gold prices rose on short-covering after a sharp fall in the previous session due to rebound in US dollar. Uncertainty on further stimulus from the US Federal Reserve also pressurized the yellow metal prices. However, worries over rising COVID-19 cases are supporting gold prices,” said Jigar Trivedi, Fundamental Research Analyst at Anand Rathi.

International gold prices on Tuesday inched up after slumping 3.4 percent in the previous session, as the resurgent dollar held on to overnight gains, while economic concerns over fresh rounds of coronavirus-induced lockdowns across Europe also helped buoy the metal, Reuters reported.

Spot gold rose 0.3 percent to $1,918.20. US gold futures gained 0.6 percent to $1,921.50.

“On MCX, gold may face resistance at Rs 50,800-51,100 levels while support is placed at Rs 50,300 levels,” Trivedi said.

Meanwhile, weakness in Indian rupee amid selling in domestic equity markets supported the gold prices at lower levels.

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