Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Wednesday as investors booked profits after the prices rallied in the previous session, analysts said.

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At 12 pm, gold futures for August delivery fell 0.37 percent to Rs 47,390 per 10 grams as against the previous close of Rs 47,567 and opening price of Rs 47,450 on the MCX. Silver futures traded 0.62 percent lower at Rs 48,030 per kg. The prices opened at Rs 48,049 as compared to the previous close of Rs 48,330 per kg.

“Gold prices eased on profit booking after a rally was seen in the previous trading session. Hopes of a potential COVID-19 vaccine and strength in local currency also pressurized the yellow metal prices,” said Jigar Trivedi. Fundamental Research Analyst, Anand Rathi.

Experts believe the yellow metal is likely to remain volatile as geopolitical tensions and fears of a second wave of coronavirus infections may offset optimism around a potential COVID-19 drug and a stronger US dollar.

In the global market, gold prices eased on hopes of a potential COVID-19 drug and a stronger US dollar. Losses in the yellow metal were limited due to worries about surging coronavirus cases in Beijing.

Spot gold was down 0.2 percent at $1,723.20 per ounce, holding a tight $6 narrow range. US gold futures fell 0.3 percent to $1,731.

“Support for gold is placed at $1,710-1,715 levels while resistance is seen at $1,735-1,745 levels,” Trivedi said.

On the MCX, Trivedi added that the trend in gold prices seems bearish for the day. “Gold may find support at Rs 47,150-47,250 level while resistance is placed at Rs 47,450-47,600 levels,” he said.

Meanwhile, the Indian rupee traded marginally higher at 75.23 per dollar amid volatile trade in the domestic equity market.

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