Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Friday following gains in international spot prices on worries over global economic slowdown amid rising coronavirus cases and a weak US dollar.

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At 11:25 am, gold futures for October delivery rose 1.05 percent to Rs 53,332 per 10 grams as against the previous close of Rs 52,780 and opening price of Rs 53,000 on the MCX. Silver futures traded 2.42 percent or Rs 1,518 higher at Rs 64,188 per kg. The prices opened at Rs 63,344 as compared to the previous close of Rs 62,670 per kg.

Domestic gold prices have risen over 38 percent this year so far.

“Weakness in dollar due to new government data underscored the US GDP and deep economy due to coronavirus and US president raised the possibility of delaying the November Election. US GDP collapse at 32.9% during the second quarter and job loss claim rose last week,” said Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking Ltd.

Gupta expects the trend to remain positive and suggests traders to buy gold around Rs 52,800 to 52,900 levels with the stoploss of Rs 52,200 and for the target of Rs 53,800 levels.

The US dollar fell to a two-year low and was on course for its worst month in a decade, making bullion cheaper for investors holding other currencies.

International gold rose on Friday en route to its best month in more than four years as the dollar slid further after dismal U.S. data added to doubts about a swift recovery from the pandemic-induced economic slump, driving investors towards the safe-haven metal, a Reuters report said.

Spot gold was up 0.4 percent at $1,966.31 per ounce after snapping a nine-session winning streak in the previous session. US gold futures rose 1 percent to $1,959.70.

“Gold prices are expected to consolidate in a range of $1,930-1,980 for the next few sessions. However, the bias remains positive given the safe-haven demand and weak dollar,” said Amit Sajeja, AVP Research - Commodities & Currencies at Motilal Oswal.

On MCX, support for October contract gold is placed at Rs 52,900 while resistance is seen at Rs 53,500 level, Sajeja added.

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First Published:Jul 31, 2020 11:34 AM IST