Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Friday supported by a positive trend in the international spot prices amid fears of the second wave of coronavirus infections and weak domestic currency, analysts said.

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At 12 pm, gold futures for August delivery rose 0.21 percent to Rs 47,456 per 10 grams as against the previous close of Rs 47,355 and opening price of Rs 47,399 on the MCX. Silver futures traded 0.39 percent higher at Rs 48,050 per kg. The prices opened at Rs 47,870 as compared to the previous close of Rs 47,861 per kg.

Border tensions between India and China also offered some support to bullion, which is often used as a safe-haven investment during times of political and financial uncertainty.

“Gold prices were supported by safe-haven demand led by concerns over the rise in coronavirus infections. Excess of global liquidity amid zero interest rate scenario augurs well for the yellow metal prices,” said Amit Sajeja, AVP Research - Commodities & Currencies at Motilal Oswal.

Globally, gold prices edged higher, with the metal's safe-haven demand supported by concerns over the second wave of coronavirus infections, although gains were limited by a stronger US dollar.

Spot gold rose 0.2 percent to $1,725.88 per ounce. The bullion has fallen 0.3 percent so far this week. US gold futures rose 0.2 percent to $1,735.10.

However, a stronger US dollar against a basket of currencies limited the upside in the yellow metal prices.

Sajeja expects gold prices to remain higher going ahead and may see new highs above Rs 48,200 per 10 grams level on the MCX.

“Traders can buy gold on dips for an immediate target of Rs 47,700,” Sajeja added.

Meanwhile, Indian rupee erased early losses and traded near day's high amid volatility in the domestic equity market.

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