Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Wednesday tracking weakness in international spot prices amid a strong dollar. Silver prices also declined more than 1 percent, slipping below Rs 70,000 levels.

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At 11:15 am, gold futures for October delivery fell 0.54 percent to Rs 51,225 per 10 grams as against the previous close of Rs 51,502 and opening price of Rs 51,449 on the MCX. Silver futures traded 1.67 percent or Rs 1,183 lower at Rs 69,707 per kg. The prices opened at Rs 70,600 as compared to the previous close of Rs 70,890 per kg.

“Gold prices fell after robust manufacturing activity in the US boosted investors’ risk appetite. Expectations of strong US GDP data which is to be released later today also supported dollar leading weakness in the yellow metal,” said Ajay Kedia, director, Kedia Commodity Comtrade.

International gold prices slipped on Wednesday as the dollar rebounded after robust US manufacturing data bolstered hopes around global economic recovery, tempering the safe-haven bullion's allure, Reuters reported.

Spot gold fell 0.3 percent to $1,964.75 per ounce, after hitting its highest since Aug 19 at $1,991.91 on Tuesday. US gold futures dropped 0.4 percent to $1,971.80.

“Gold may find support near $1,935 level. On MCX, support is placed at Rs 50,800 while resistance is seen at Rs 51,700 level,” Kedia said.

However, analysts believe the fall in gold prices may be temporary and buying may be seen at support levels. Hopes that US interest rates would stay low for longer under the new monetary policy approach from the Federal Reserve put a floor under bullion prices.

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