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

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At 11:20 am, gold futures for August delivery eased 0.02 percent to Rs 48,955 per 10 grams as against the previous close of Rs 48,967 and opening price of Rs 48,910 on the MCX. Silver futures traded 0.07 percent higher at Rs 52,935 per kg. The prices opened at Rs 52,735 as compared to the previous close of Rs 52,899 per kg.

“The sustained US-China trade tensions and excess global liquidity scenario continue to be supportive of gold prices. The near term outlook looks positive,” said Amit Sajeja, AVP Research - Commodities & Currencies at Motilal Oswal.

Globally, gold prices edged lower on Monday due to a stronger US dollar, but worries over a surge in coronavirus cases and its impact on the global economy kept the safe-haven metal above the psychological level of $1,800 per ounce.

Spot gold was down 0.1 percent at $1,807.80 per ounce. US gold futures were steady at $1,809.70.

“The gold prices may face resistance at $1,830-1,835 levels. Breaching these levels, the prices may test $1,850 per ounce,” Sajeja added.

Meanwhile, gains in rupee against the US dollar amid buying in the domestic equity market pressurized the yellow metals prices.

“On MCX, support for gold is placed at Rs 48,700 level. The prices may soon touch Rs 49,800 levels as the fundamentals seem positive,” Sajeja said.

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