Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Thursday tracking a muted trend in the international spot prices amid improved investor risk appetite.

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At 11:05 am, gold futures for February delivery eased 0.09 percent to Rs 50,090 per 10 grams as against the previous close of Rs 50,135 and opening price of Rs 50,059 on the MCX. Silver futures traded 0.14 percent lower at Rs 68,520 per kg. The prices opened at Rs 68,452 as compared to the previous close of Rs 68,614 per kg.

“The precious metal prices fell due to the year-end profit-booking by investors. Gold and silver are expected to be thinly traded going ahead. Weaker than expected Chinese PMI data also triggered selling in silver,” said Jigar Trivedi, Fundamental Research Analyst - Commodities, Anand Rathi.

Trivedi is of the view that upside in gold looks limited and it may face resistance at Rs 50,200-50,300 levels.

On MCX, silver may find support at Rs 68,000-68,200 levels and resistance at Rs 68,700-68,900 levels, he said.

International gold prices fell on Thursday as hopes for an economic recovery next year increased risk appetite, although the precious metal was set to wrap up the year with its best performance in a decade, a Reuters report said.

Spot gold fell 0.2 percent to $1,889.58 per ounce but was up more than 24 percent for the year. US gold futures were little changed at $1,892.90.

“Gold may find support $1,883-1,887 levels while resistance is placed at $1,900 level. Support for silver is seen at $26.15-26.30 level and resistance at $26.5 level,” Trivedi said.

Going ahead in 2021, analysts believe the outlook for gold remains positive.

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First Published:Dec 31, 2020 11:17 AM IST