Gold prices in India slipped over 1 percent to trade below Rs 49,000 per 10 grams level on the Multi Commodity Exchange (MCX) Tuesday tracking a weak trend in international spot prices as the development over COVID-19 vaccine dented safe-haven appeal for the yellow metal.

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At 11:00 am, gold futures for December delivery fell 1.15 percent or by Rs 571 to Rs 48,909 per 10 grams as against the previous close of Rs 49,480 and opening price of Rs 49,262 on the MCX. Silver futures traded 1.44 percent lower at Rs 59,655 per kg. The prices opened at Rs 60,064 as compared to the previous close of Rs 60,525 per kg.

On Monday, gold prices declined 1.46 percent while silver ended 2.63 percent on the back of a recovery in the global equity market and development on the front of the coronavirus vaccine.

“Gold ETF holding is also falling more than a million ounce in this month. In the international market. The trend of gold and silver remains weak and expectation of safe-haven demand of this asset may fade out,” said Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking Ltd.

International gold slipped on Tuesday as progress on a COVID-19 vaccine and a federal agency's approval of US President-elect Joe Biden's transition to the White House bolstered risk appetite, denting the bullion's safe-haven appeal, Reuters reported.

Spot gold fell 0.6 percent to $1,824.91 per ounce. It fell as much as 2.2 percent on Monday to hit a four-month low. US gold futures were down 0.8 percent at $1,823.90.

“Gold below $1,850 looks weak and may test $1,795 level while $1,800-$1,806 will act as support. On MCX, gold may find support at Rs 48,300 while resistance is placed at Rs 49,300 level. Support for silver is placed at Rs 58,200 and resistance is seen at Rs 60,500 level,” said Ajay Kedia, director, Kedia Commodity Comtrade.

Meanwhile, upbeat domestic equity market on improved investor risk-appetite pressurized the gold prices.

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First Published:Nov 24, 2020 11:08 AM IST