Gold prices in India fell on the Multi Commodity Exchange (MCX) Friday as investors opted profit-booking after the prices hovered near all-time high in the previous sessions. However, weak global economic scenario amid rising coronavirus cases supported safe-haven demand for the yellow metal, analysts said.

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At 11:25 am, gold futures for August delivery fell 0.22 percent to Rs 47,835 per 10 grams as against the previous close of Rs 47,941 and opening price of Rs 47,902 on the MCX. Silver futures traded 0.33 percent lower at Rs 47,959 per kg. The prices opened at Rs 48,154 as compared to the previous close of Rs 48,116 per kg.

“Gold prices declined on profit booking and mixed economic data. After two weeks of rally, we are seeing a correction. However, the bias remains positive amid the concerns over rising infection cases,” said Jigar Trivedi, Fundamental Research Analyst at Anand Rathi.

On the global front, gold prices were headed for their third consecutive weekly gain on worries about rising global cases of the novel coronavirus, although prices see-sawed on Friday after a firm dollar and a gain in equities countered safe-haven demand.

Spot gold was steady at $1,760.73 per ounce as of 0339 GMT.

Strength in Indian rupee amid buying in the equity market also pressurized domestic gold prices.

However, the overall outlook for gold remains positive as geopolitical instability and an underperforming dollar may keep safe-haven appeal intact.

“The positive momentum in gold is likely to be seen and the prices may rise to Rs 48,250 per 10 grams levels next week. Hence, buy on dips is recommended for the gold,” Trivedi said.

For intraday, support for gold price placed at Rs 47,650-47,750 levels while resistance is seen at Rs 47,900-47,980 levels, according to Trivedi.

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First Published:Jun 26, 2020 11:31 AM IST