Gold prices in India traded flat on the Multi Commodity Exchange (MCX) Tuesday tracking a muted trend in the international spot prices amid a stable US dollar.

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At 11:25 am, gold futures for February delivery eased 0.06 percent to Rs 51,392 per 10 grams as against the previous close of Rs 51,424 and opening price of Rs 51,397 on the MCX. Silver futures traded 0.32 percent higher at Rs 70,263 per kg. The prices opened at Rs 70,302 as compared to the previous close of Rs 70,036 per kg.

“Gold prices consolidated in the last week of December which led buying in the new year. Worries over rising coronavirus cases in the UK lifted the safe-haven appeal for the yellow metal. However, a recovery in the US dollar limited the upside in gold,” said Amit Sajeja, VP Research - Commodities & Currencies at Motilal Oswal.

International gold prices inched lower on Tuesday after hitting an eight-week high, as the US dollar halted its slide ahead of Senate runoff elections in Georgia that will decide the future path of fiscal stimulus in the world’s largest economy.

Spot gold was down 0.2 percent to $1,938.11 per ounce, after hitting its highest since November 9 at $1,945.26 earlier in the session, while US gold futures shed 0.3 percent to $1,941.40.

On MCX, analysts believe that the bias for gold prices above Rs 51,000 level looks positive.

“Gold may test Rs 51,750 level with a support at Rs 51,000 level on MCX. For silver, resistance is placed at Rs 70,800 and 71,500 levels while it may find support at Rs 69,000-69,200 levels,” Sajeja said.

He expects the US dollar index to remain under pressure going ahead which may support the gold prices further.

Anuj Gupta, Deputy Vice President – Research - (Commodities and Currencies), Angel Broking is of the view that the trend of gold and silver is positive so traders can buy gold and silver.

“As for today traders can buy gold at Rs 51,300 levels with the stop loss of Rs 51,000 levels for the target of Rs 51,700 levels. They can also buy silver at Rs 70,000 levels, with the stop loss of Rs 69,000 levels and for the target of Rs 71,500 levels,” Gupta said.

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First Published:Jan 5, 2021 11:37 AM IST