Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Friday amid steady international spot prices. However, the fundamentals for gold seem supportive and the prices may rise going ahead, analysts said.

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At 12:45 pm, gold futures for August delivery fell 0.46 percent to Rs 47,196 per 10 grams as against the previous close of Rs 47,414 and opening price of Rs 47,150 on the MCX. Silver futures traded 1.30 percent lower at Rs 48,005 per kg. The prices opened at Rs 47,500 as compared to the previous close of Rs 48,639 per kg.

Analysts believe that the safe-haven demand for gold still persists amid the rising fears of the second wave of COVID-19 cases, bleak economic outlook and a selloff in equity markets.

“The overall sentiment for gold remains bullish amid safe-haven buying on account of dampening risk appetite. The low-interest rate scenario and fears of another wave of coronavirus infections are supportive for gold prices, said Amit Sajeja, Associate VP, Research Commodities & Currencies, Motilal Oswal.

International gold prices were flat on Friday as a stronger dollar offset diminishing risk appetite over concerns of the second wave of coronavirus infections and protracted economic recovery, while the metal was on track for its first weekly rise in four weeks.

Spot gold was unchanged at $1,727.72 per ounce. Bullion has risen about 2.5 percent so far this week. US gold futures fell 0.4 percent to $1,732.60.

Sajeja believes that the gold prices may not fall below $1,665-1,670 levels.

In the next week, gold prices may rise towards Rs 48,200 per 10 grams on the MCX, Sajeja added.

Meanwhile, Indian rupee was trading lower at 75.98 per dollar, amid a selloff in the domestic equity market.

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