Gold prices in India traded marginally higher on the Multi Commodity Exchange (MCX) Thursday tracking gains in international spot prices that rose after falling more than 2 percent in yesterday’s session as risk sentiment improved on hopes of a recovery from a coronavirus-driven economic slump, with investors largely overlooking the tensions between the United States and China, analysts said.

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At 12:13 pm, gold futures for August delivery rose marginally 0.03 percent to Rs 46,030 per 10 grams as against the previous close of Rs 46,008 and opening price of Rs 46,028 on the MCX. Silver futures traded 0.68 percent lower at Rs 48,124 per kg. The prices opened at Rs 48,359 as compared to the previous close of Rs 48,454 per kg.

“The undertone for gold prices remains positive. However, some weakness in the yellow metal was seen as the risk sentiment improved on hopes of economic recovery and upbeat equity markets. This also led to profit booking in the gold prices,” said Jigar Trivedi, Fundamental Research Analyst, Anand Rathi.

In the global market, gold prices rose on Thursday after an equity rally fuelled by signs of economic recovery from mandated shutdowns sparked the biggest daily fall since April 30 in the previous session.

Spot gold climbed 0.4 percent to $1,703.95 per ounce by 0407 GMT after a 1.7 percent drop on Wednesday. US gold futures inched up 0.1 percent to $1,705.70.

The US private payrolls fell less than expected, suggesting a lessening of layoffs as businesses reopen. Thus, global equity markets rallied on further improvement in the economic situation.

Meanwhile, the Indian rupee erased early losses but traded marginally lower at 75.49 per dollar, amid flat trading seen in the domestic equity market.

Initial support for gold prices is placed at $1,690 level and second support at $1,675 while resistance is seen at $1,710 - $1,730 levels, Trivedi said.

“On the MCX, gold prices may find support at Rs 45,650-45,850 levels while resistance is palced at Rs 46,100-46,250 levels,” Trivedi added.

Market participants will also be keeping an eye on the European Central Bank’s policy statement scheduled later today.

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First Published:Jun 4, 2020 12:16 PM IST