Gold prices in India fell below Rs 51,000 level on the Multi Commodity Exchange (MCX) Tuesday following weakness in the international spot prices amid strong US dollar. Silver prices also declined over half a percent.

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At 10:45 am, gold futures for October delivery fell 0.40 percent to Rs 50,862 per 10 grams as against the previous close of Rs 51,065 and opening price of Rs 50,800 on the MCX. Silver futures traded 0.61 percent lower at Rs 67,852 per kg. The prices opened at Rs 67,799 as compared to the previous close of Rs 68,271 per kg.

“Gold and silver is trading lower today on the back of sharp recovery in US Dollar as investors weighed whether an accommodative turn from the European Central Bank later this week could hit the euro, while the pound nursed losses due to Brexit uncertainty,” said Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking Ltd

International gold prices slipped on Tuesday, weighed down by a stronger US dollar, but the safe-haven metal's decline was limited by growing fears over the global economic recovery from the coronavirus crisis, Reuters reported.

Spot gold was down 0.2 percent at $1,925.09 per ounce. US gold futures fell 0.2 percent to $1,931.20.

“As of today, traders can sell in gold at Rs 51,100 levels with the stop loss of Rs 51,450 levels for the target of 50,200 levels. Sell in Silver at Rs 68,500 levels, with the stop loss of 69,900 levels and for the target of 65,000 levels. In the Bullion index “Bulldex” traders can also go for sell at 16,000 with the stop loss of 16,250 and for the target of 15,700,” Gupta said.

Investors will now focus on the European Central Bank policy statement that will be released this week.

“Dollar gained against its major crosses after economic data released from the US continues to surprise on the upside. Global central banks in the recent past have rolled out massive stimulus and slashed interest rates either to zero or negative to counter the damage faced by the coronavirus pandemic,” said Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services Ltd.

For today, Damani expects gold to trade in the range of Rs 50,450 and Rs 51,300. On COMEX the expected range is $1,900 and $1,950.

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