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

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At 11:25 am, gold futures for February delivery eased 0.08 percent to Rs 48,854 per 10 grams as against the previous close of Rs 48,894 and opening price of Rs 48,965 on the MCX. Silver futures traded 0.22 percent higher at Rs 65,575 per kg. The prices opened at Rs 65,829 as compared to the previous close of Rs 65,429 per kg.

“Gold and silver may witness short-covering going ahead. The US dollar index eased which is supportive for gold prices. The new stimulus plan in the US is also expected to pressurize the dollar which will be positive for gold and silver prices,” said Amit Sajeja, VP Research - Commodities & Currencies at Motilal Oswal.

International gold prices rose on Tuesday, off a 1-1/2-month low hit in the previous session, as the dollar slipped and hopes for further global stimulus underpinned the safe-haven metal, a Reuters report said.

Spot gold rose 0.2 percent to $1,840.81 per ounce, recovering from its lowest since December 2 at $1,809.90 hit on Monday. US gold futures gained 0.5 percent to $1,839.40.

The dollar fell from a four-week high hit in the previous session, making gold attractive for other currency holders.

On MCX, Sajeja is of the view that the gold may test Rs 49,150 level while silver may rise towards Rs 66,500 in coming sessions.

“Crucial support for gold is placed at Rs 48,500 level while it can test Rs 49,150 level soon. For silver, support is seen at Rs 64,000 level. Silver may rise to at Rs 66,500 level and breaching that, it may scale Rs 67,800 level,” Sajeja said.

Meanwhile, rally in the domestic equity market and strength in rupee may limit gains for the precious metal prices.

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