Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Thursday, in line with the international spot prices, as strong economic data from the US and reports of the development of potential COVID-19 vaccine reduced safe-haven demand, analysts said.

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Strong Indian rupee and profit booking at higher levels also dragged the yellow metal prices in the domestic market.

At 11:10 am, gold futures for August delivery fell 0.20 percent to Rs 48,170 per 10 grams as against the previous close of Rs 48,267 and opening price of Rs 48,174 on the MCX. Silver futures traded 0.36 percent lower at Rs 49,248 per kg. The prices opened at Rs 49,162 as compared to the previous close of Rs 49,424 per kg.

“Gold prices retreated from high levels on profit booking an strong manufacturing data from the United States. Investors will also await US employment data and weekly initial jobless claims report for further cues,” said Ajay Kedia, director, Kedia Commodity Comtrade.

On the international front, gold edged lower, easing from a near eight-year peak hit in the last session, as solid US manufacturing data and promising results from a COVID-19 vaccine trial revived hopes for a quick economic recovery, denting demand for safe havens, Reuters reported.

Spot gold fell 0.2 percent to $1,766.79 per ounce, after touching $1,788.96 on Wednesday, its highest since October 2012. US gold futures fell 0.2 percent to $1,776.80.

Meanwhile, the Indian rupee opened higher against the US dollar. The rupee opened at 75.50/$ as against the previous close of 75.59/$ amid buying in the domestic equity market.

“On MCX, Rs 48,000 level will act as strong support for the gold prices. Breaching this level, gold may fall below Rs 47,700 levels. While resistance is placed at Rs 48,540 level, Kedia added.

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