Gold prices in India traded flat with a negative bias on the Multi Commodity Exchange (MCX) Tuesday after stabilizing near five-month low levels. However, the trend still remains weak on improved investor risk appetite, analysts said.

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At 12:05 pm, gold futures for February delivery fell 0.17 percent to Rs 47,835 per 10 grams as against the previous close of Rs 47,918 and the opening price of Rs 48,097 on the MCX. Silver futures traded 0.79 percent higher at Rs 60,696 per kg. The prices opened at Rs 61,012 as compared to the previous close of Rs 60,222 per kg.

Gold prices plunged 6 percent in the month of November, its worst month in four years, as optimism over coronavirus vaccine-led economic rebound pushed investors towards risky asses and cryptocurrencies, denting the safe-haven appeal for the yellow metal.

“Gold prices were stable on a technical bounce back from oversold territory. Developments over COVID-19 vaccine and upbeat equity markets may weigh on the yellow metal prices,” said Ajay Kedia, director, Kedia Commodity Comtrade.

Gold price below Rs 48,100 look weak till Rs 47,550 level, Kedia added.

International gold prices recovered from five-month lows on Tuesday as worries over spiking COVID-19 cases offset optimism around vaccine developments and nudged investors towards the precious metal, Reuters reported.

Following sharp losses in the previous two sessions, spot gold rose 0.4 percent to $1,784.37 per ounce. US gold futures gained 0.4 percent to $1,787.90.

Gold clocked its worst monthly fall in four years on Monday, falling to $1,764.29 per ounce, the lowest level since July 2.

“The trend in gold prices remains negative as far as it is below $1,800 level. On MCX, support for gold is placed at Rs 47,450 level while resistance is seen at Rs 48,300 level,” Kedia added.

Analysts believe the yellow metal to trade sideways to negative amid upbeat domestic equity markets and a stronger Indian rupee.

Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking is of the view that the trend for gold and silver remains bearish as expectation of safe haven demand of this asset may fade out.

“As for today traders can sell gold at Rs 48,300 levels with the stop loss of Rs 48,700 levels for the target of Rs 47,700 levels. They can sell Silver at Rs 61,300 levels, with the stop loss of Rs 62,000 levels and for the target of Rs 59,800 levels,” Gupta said.

In the international market, gold may test $1,750 to $1,760 per ounce levels soon, he added.

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