Gold prices in India traded sharply lower on the Multi Commodity Exchange (MCX) on Friday amid selling pressure from investors. Sell-off in the yellow metal is seen as investors opt for profit-taking in order to cushion losses in other holdings, analysts said.

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At 1:55 pm, gold futures for April delivery fell 1.13 percent to Rs 41,731 per 10 grams as against the previous close of Rs 42,206 and opening price of Rs 41,750 on the MCX.

Meanwhile, the Indian rupee recovered after hitting record low against the US dollar on Friday. The domestic currency was trading 50 paise up from days' lows, pressurizing the yellow metal prices.

According to Kedia Commodities, support for gold prices is placed at Rs 41,350 level while resistance is at Rs 42,500 level on MCX.

International gold prices fell further on Friday and were on track to post their biggest weekly drop in nearly seven years, as a rout in global equities forced investors to cover margin calls. US gold futures fell 0.61 percent to $1,580.60

Recent measures by New York Federal Reserve to infuse liquidity also dragged the yellow metal prices, analysts added. The New York Federal Reserve has announced measures to infuse $1.5 trillion through new repo operations in a bid to supply liquidity to the financial markets.

Meanwhile, silver futures declined 2.53 percent or Rs 1,117 to trade at Rs 43,022 per kg. The prices opened at Rs 43,280 as compared to the previous close of Rs 44,139 per kg.

First Published:Mar 13, 2020 10:14 AM IST