Gold prices in India fell on the Multi Commodity Exchange (MCX) Wednesday tracking weakness in international spot prices on a steady dollar and ahead of US Federal Reserve meeting minutes, analysts said. Silver prices also declined by over 2 percent.

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At 11:45 am, gold futures for October delivery fell 0.83 percent to Rs 53,124 per 10 grams as against the previous close of Rs 53,571 and opening price of Rs 53,450 on the MCX. Silver futures traded 2.22 percent or by Rs 1,545 lower at Rs 67,960 per kg. The prices opened at Rs 68,783 as compared to the previous close of Rs 69,505 per kg.

“Gold prices declined on a steady US dollar. Profit booking after a rise in the previous session also pressurized the yellow metal prices. Both precious metals are expected to remain volatile. While gold may trade with a downside bias,” said Amit Sajeja, AVP Research - Commodities & Currencies at Motilal Oswal.

International gold fell below $2,000 an ounce on Wednesday as the dollar steadied, with investors awaiting minutes from the US Federal Reserve's last policy meeting, Reuters reported.

Spot gold was down 0.4 percent at $1,993.34 per ounce, after hitting a one-week high of $2,014.97 on Tuesday. US gold futures fell 0.5 percent to $2,002.40.

The dollar index edged 0.1 percent higher against its rivals after hitting a more than two-year low in the last session

Investors await the release of the US Federal Reserve meeting minutes later today.

On the domestic front, strength in the Indian rupee against the US dollar amid buying in the domestic equity market also dented the yellow metal appeal.

“On MCX, support for gold prices is placed at Rs 52,600 level while it may find resistance at Rs 53,500. However, the downside seems limited,” Sajeja added.

First Published:Aug 19, 2020 11:57 AM IST