Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Tuesday, after falling almost 5 percent in the previous session, tracking gains in international spot prices on hopes of stimulus measures, analysts said.

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At 11:50 am, gold futures for December delivery rose 1.45 percent to Rs 50,468 per 10 grams as against the previous close of Rs 49,748 and opening price of Rs 49,931 on the MCX. Silver futures traded 2.27 percent higher at Rs 62,235 per kg. The prices opened at Rs 61,900 as compared to the previous close of Rs 60,854 per kg.

Gold price dropped on Monday posting their largest one-day dollar and percentage declines since 2013 as positive news on a potential COVID-19 vaccine helped strengthen the US dollar and bond yields. Silver also tumbled more than 7 percent in the previous trading session.

International gold prices firmed on Tuesday as hopes of more US stimulus measures to cushion the COVID-19 pandemic hit bolstered the precious metal's appeal as an inflation hedge, Reuters reported.

Spot gold climbed 1 percent to $1,880.41 per ounce. It fell to $1,849.93, its lowest level since September 28, on Monday after US drugmaker Pfizer Inc said its experimental COVID-19 vaccine was more than 90 percent effective, based on initial trial results. Gold futures were up 1.3 percent at $1,878.90.

“Both the precious metals, gold and silver, are expected to trade volatile amid fresh developments over the COVID-19 vaccine. The upside in the yellow metal looks limited,” said Ajay Kedia, director, Kedia Commodity Comtrade.

According to Kedia, the bias for gold remains weak till it holds below the $1,900 level. Gold may test $1,820 if it breaches the support level of $1,860, Kedia added.

“On MCX, resistance for gold is seen at Rs 51,500 level while support is placed at Rs 49,500 level,” he said.

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