Gold prices in India gained more than 3 percent on the Multi Commodity Exchange (MCX) Wednesday as the 21-days lockdown across the country increased safe-haven appeal, analysts said.

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At 3:50 pm, gold futures for April delivery rallied by Rs 1,062 or 2.57 percent to Rs 42,441 per 10 grams as against the previous close of Rs 41,379 on the MCX.

Silver prices also surged 1.95 percent to Rs 41,316 per kg as compared to the previous close of Rs 40,524 and opening at Rs 40,540 on the MCX.

"Gold prices gained as the stimulus measures announced by various governments and central banks around the world eased liquidity concerns in the markets. This pressurized the US dollar which is positive for gold prices," said Vipul Shrivastava, Research Analyst - Bullion & Energy, Religare Broking.

In global market, gold prices fell on Wednesday, after a steep rise in the previous session, as a flight to cash offset optimism around the US government agreeing on a massive stimulus package to ease the economic burden of the coronavirus pandemic.

In volatile trade, spot gold fell 1 percent to $1,594.18 per ounce by 0743 GMT, after rising as much as 1.6 percent earlier in the day. The metal jumped more than 3 percent on Tuesday.

US gold futures climbed 0.2 percent to $1,664.80.

"The overall trend in yellow metal prices remains positive and we expect further buying in the asset. Gold may find immediate support at Rs 41,500 and resistance is placed at Rs 42,900 on MCX," Shrivastava added.

In the near term, the next major resistance for gold prices is placed at Rs 43,800 level on the MCX, he said.

First Published:Mar 25, 2020 9:09 AM IST