Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Friday as hopes of recovery in the economy amid restart of business activities faded safe-haven appeal for the yellow metal. Strong rupee and profit booking also led gold prices lower, analysts said.

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At 11: 55 am, gold futures for August delivery fell 0.78 percent or Rs 365 to Rs 46,331 per 10 grams as against the previous close of Rs 46,696 and opening price of Rs 46,401 on the MCX. Silver futures traded 0.70 percent lower at Rs 48,471 per kg. The prices opened at Rs 48,331 as compared to the previous close of Rs 48,811 per kg.

“Gold prices are trading lower hoping for a global economic recovery that kept pressure on the safe-haven demand of the gold. We are expecting some profit booking in gold prices as safe heaven demand fades out. On the weekly perspective, the chance of profit booking could be seen in gold prices,” said Anuj Gupta, DVP–Commodities & Currencies Research, Angel Broking

Globally, gold eased ahead of a highly awaited US jobs report on Friday as markets pinned hopes on an economic recovery, putting the safe-haven metal on track for a third consecutive weekly decline.

Spot gold was down 0.2 percent at $1,706.91 per ounce as of 0324 GMT. US gold futures slid 0.7 percent to $1,714.50. Bullion has declined about 0.8 percent so far this week, which could be its biggest fall since the week ending May 1.

Strength in the rupee amid hopes of a recovery in the world economy and upbeat Indian equity markets pressurized the yellow metal prices.

“Intraday traders can sell gold at Rs 46,700 to 46,800 levels, with the stop-loss of Rs 47,100, for the target of Rs 46,000 levels,” Gupta added.

For a weekly perspective, Gupta expects gold to test Rs 45,800 to 45,500 levels on MCX and in the international market, it can test $1,690 per ounce.

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