Gold prices in India opened higher on the Multi Commodity Exchange (MCX) Tuesday led by recession fears, low interest rates and increased safe-haven demand, analysts said.

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At 9:05 am, gold futures for June delivery rose Rs 1,536 or 3.51 percent to Rs 45,258 per 10 grams as against the previous close of Rs 43,722 and opening price of Rs 44,000 on the MCX.

In global market, gold prices eased from a four-week high on Tuesday, as the US dollar and global equities strengthened on signs of a slowdown in coronavirus-related deaths.

Spot gold was down 0.2 percent at $1,657.67 per ounce, as of 0110 GMT, after rising to a four-week high earlier in the session. The metal climbed 2.8 percent on Monday. US gold futures rose 1.7 percent to $1,723.

"Gold increased in Comex almost 3 percent to $1,712 on back of the recession, lowest interest rate in the world and the increased demand of gold. ETF holding rose by 1.5 million ounces last week. People are buying gold in fututes and in electronic form and due to this the premium between Spot and future widened," said Anuj Gupta, DVP–Commodities & Currencies Research at Angel Broking.

Gupta expects yellow metal prices to rally further to test $1,750-1,780 levels.

Meanwhile, silver futures traded Rs 2,225 or 5.40 percent higher at Rs 43,448 per kg. The prices opened at Rs 42,871 as compared to the previous close of Rs 41,223 per kg.

First Published:Apr 7, 2020 9:10 AM IST