Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Friday on improved investor risk appetite, but a softer dollar may limited losses. Silver prices also traded lower.

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At 10:30 am, gold futures for October delivery fell 0.23 percent to Rs 45,950 per 10 grams as against the previous close of Rs 46,056 and the opening price of Rs 46,075 on the MCX. Silver futures traded 0.30 percent lower at Rs 60,605 per kg. The prices opened at Rs 60,743 as compared to the previous close of Rs 60,789 per kg.

“The gold prices are likely to remain sideways to positive amid a weak US dollar. Concerns over physical demand may weigh, but we may see a pullback. The gold-silver ratio is also down,” said Ajay Kedia, Director, Kedia Advisory.

The dollar index was at near its lowest level in a week, as investors digest the latest FOMC statement. The Federal Reserve lowered its growth projections for 2021 and raised inflation forecast but reinforced tapering could soon begin.

Investors will focus on comments from Fed officials, including Chair Jerome Powell.

International gold prices traded marginally higher due to a softer dollar. US gold futures rose 0.05 percent to $1,750.75 per ounce.

Meanwhile, strength in the domestic equity market may apply pressure on the bullion prices, while a weak rupee may support precious metals at lower levels.

“We expect both the precious metals could find support at lower levels once again in today’s session. Gold is having support at $1740-1728 per troy ounce and resistance at $1,762-1774 per troy ounce; silver is having support at $22.40-22.20 per troy ounce and resistance at $22.88-23.20 per troy ounce,” said Manoj Kumar Jain, Director, Head-Commodity & Currency Research, Prithvifinmart Commodity Research.

At MCX, gold is having support at Rs 45,800-45,550 and resistance at Rs 46,300-46,580; silver is having support at Rs 60,300-59,800 and resistance at Rs 61,100-61,800 levels, he added.

"We suggest buying gold around Rs 45,880 with a stop loss of Rs 45,650 for the target of Rs 46,300," Jain said.