Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Friday tracking weakness in international spot prices as higher US Treasury yields and upbeat equity markets dented safe-haven appeal for the yellow metal, analysts said.

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At 11:35 am, gold futures for June delivery fell 0.53 percent to Rs 48,323 per 10 grams as against the previous close of Rs 48,581 and the opening price of Rs 48,432 on the MCX. Silver futures traded 0.75 percent lower at Rs 71,182 per kg. The prices opened at Rs 71,460 as compared to the previous close of Rs 71,719 per kg.

“Gold was technically overbought and now it is witnessing profit booking after the recent rally. The correction in the yellow metal will continue and prices may test the $1,850 level due to an uptick in the US Treasury yield and strength in the dollar,” said Amit Sajeja, VP Research - Commodities & Currencies at Motilal Oswal.

International gold prices edged lower on Friday, as an uptick in the dollar and US Treasury yields weighed on the safe-haven metal, while investors awaited crucial US inflation data due later in the day to gauge inflationary pressure, said a Reuters report.

Spot gold fell 0.2 percent to $1,891.45 per ounce. Bullion has risen 0.6 percent this week, on track for its fourth straight weekly gain. US gold futures shed 0.3 percent to $1,891.60.

The dollar index was up 0.1 percent against rivals, while the US 10-year Treasury yield rose to 1.617 percent, aided by strong US economic data.

Investors now await the monthly US personal consumption report due later in the day.

“The gold prices are likely to fall towards Rs 47600 – 47,700 level on MCX and we may see buying at these levels. The short-term range remains between Rs 47,500-48,500. Silver may trade in the range of Rs 69,500-72,000 going ahead,” Sajeja added.

Meanwhile, strength in the Indian rupee amid buying in the domestic equity market also pressurized the precious metal prices.

Here are gold rates across major cities:

Here are silver rates across major cities:

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First Published:May 28, 2021 11:44 AM IST