Gold prices in India declined and continued to trade below Rs 50,000 per 10 grams level on the Multi Commodity Exchange (MCX) Thursday tracking weakness in the international spot prices amid a stronger dollar. Silver prices also declined by over 3 percent.

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At 11:00 am, gold futures for October delivery fell 0.32 percent to Rs 49,351 per 10 grams as against the previous close of Rs 49,508 and opening price of Rs 49,400 on the MCX. Silver futures plunged 3.50 percent or by Rs 2,047 to Rs 56,441 per kg. The prices opened at Rs 57,900 as compared to the previous close of Rs 58,488 per kg.

“Gold continues to weaken due to the stronger dollar. Prices are likely to remain sideways to weak during the day while investors will await macro data from the US later today. Gold is technically oversold and we may see some rebound in prices going ahead,” said Ajay Kedia, director, Kedia Commodity Comtrade.

The yellow metal price has been falling sharply in the last few sessions and is down around 5 percent for the week as the dollar held on to its recent rally while a lack of additional stimulus to aid the recovery of the Coronavirus-battered global economy further weighed on sentiments.

Gold prices are down over 11 percent from all-time high hit in August.

International gold prices fell on Thursday to its lowest level in more than two months, crippled by a robust dollar, while investors fretted over uncertainties surrounding further stimulus measures to support a sluggish economic recovery in the United States, Reuters reported.

Spot gold was down 0.4 percent to $1,855.72 per ounce, extending falls into a fourth session. Earlier in the session, it hit its lowest since July 22 at $1,853.32. US gold futures were down 0.3 percent to $1,863.60.

“On MCX, gold may find support at Rs 48,850 level while resistance is placed at Rs 49,700 level,” Kedia said.

Meanwhile, the weak Indian rupee amid selling in domestic equity markets pressurized the gold prices.

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