Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Friday following weakness in international spot prices as rising bond yields and the stronger dollar continue to dampen sentiment fo the yellow metal, analysts said.

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At 11:00 am, gold futures for April delivery fell 0.54 percent to Rs 44,300 per 10 grams as against the previous close of Rs 44,541 and the opening price of Rs 44,444 on the MCX. Silver futures traded 0.92 percent lower at Rs 65,312 per kg. The prices opened at Rs 65,931 as compared to the previous close of Rs 65,921 per kg.

“Gold prices fell on a strong dollar and rising bond yields. Remarks by Federal Reserve Chair Jerome Powell also pressurized the yellow metal. The trend in gold prices is expected to remain weak. However, short-covering may be seen in the evening session as gold is already in oversold territory,” said Ajay Kedia, director, Kedia Advisory.

International gold declined to a near nine-month low on Friday and was set for a third straight weekly decline, as the dollar and bond yields rose after Federal Reserve Chair Jerome Powell’s remarks that the rise in yields were not “disorderly.”

Spot gold eased 0.2 percent to $1,693.67 per ounce, having earlier fallen to its lowest since June 8 at $1,686.40. For the week so far, it is down 2.3 percent. US gold futures fell 0.6 percent to $1,690.90.

Powell on Thursday repeated his pledge to keep credit loose and said although the rise in yields was “notable”, he did not believe the Fed will have to intervene to bring them down, a Reuters report said.

“On MCX, support for gold is placed at Rs 43,900-44,100 levels, while it may face resistance at Rs 44,650 level. Silver may find support at Rs 64,200 level and resistance at Rs 67,200 level,” Kedia said.

Here are gold rates across major cities:

Source: Kedia Advisory

Here are silver rates across major cities:

Source: Kedia Advisory

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