Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Thursday tracking weakness international spot prices as investors opted for profit booking after the prices hit an all-time high in the previous session, analysts said. The US Federal Reserve’s move to keep interest rate near zero and support the economy also boosted investor risk appetite, analysts said.

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At 11:30 am, gold futures for October delivery fell 0.20 percent to Rs 52,933 per 10 grams as against the previous close of Rs 53,039 and opening price of Rs 53,297 on the MCX. Silver futures traded 1.97 percent lower at Rs 64,066 per kg. The prices opened at Rs 65,370 as compared to the previous close of Rs 65,354 per kg.

International gold prices eased on Thursday after the US Federal Reserve's vow to support the coronavirus-ravaged economy buoyed risk sentiment, with market expectations for prices to breach the $2,000 level facing resistance in the short term.

Spot gold was down 0.3 percent to $1,964.70 per ounce. US gold futures rose 0.3 percent to $1,959.20.

Gold jumped to near its all-time high on Wednesday after the Fed pledged to keep interest rates near zero as the rapid rise in virus cases dampens hopes for an economic recovery. Low interest rates reduce the opportunity cost of holding the non-yielding metal, also considered a refuge from inflation and currency debasement as central banks continue to pump out stimulus, a Reuters report said.

Fed Chair Jerome Powell promised the US central bank would "do what we can, and for as long as it takes.

“Gold fell on profit-booking and a rebound in US dollar index. However, the sentiment remains positive amid concerns over rising coronavirus cases and sustained safe-haven demand,” said Jigar Trivedi, Fundamental Research Analyst at Anand Rathi.

Investors will watch for the US GDP data to be released later today which is expected to remain weak. Hence, Trivedi suggests buying gold on dips.

“On MCX, support for gold futures for October is seen at Rs 52,500-52,750 levels while resistance is placed at Rs 53,100-53,200 levels,” Trivedi added.

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First Published:Jul 30, 2020 11:37 AM IST