Gold prices in India traded flat with a negative bias on the Multi Commodity Exchange (MCX) Monday tracking muted trend in the international spot prices and a strong Indian rupee. However, losses were capped amid rising coronavirus cases globally, analysts said.

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At 12:15 pm, gold futures for August delivery fell 0.08 percent to Rs 48,007 per 10 grams as against the previous close of Rs 48,046 and opening price of Rs 47,970 on the MCX. Silver futures traded 0.22 percent higher at Rs 49,286 per kg. The prices opened at Rs 49,087 as compared to the previous close of Rs 49,177 per kg.

“Gold prices fell as risk sentiment improved on hopes of coronavirus vaccine and strength in domestic currency. Strong economic data from US, China, and EU also pressurized the yellow metal prices,” said Ajay Kedia, director, Kedia Commodity Comtrade.

International gold prices eased as risk sentiment improved ahead of US services sector data, although losses were capped by worries over surging coronavirus cases in some US states.

Spot gold was down 0.1 percent to $1,773.49 per ounce. US gold futures fell 0.4 percent to $1,782.30.

Domestic gold prices were also pressurized due to strength in the rupee amid buying seen in the domestic equity market.

“On MCX support for gold prices is placed at Rs 47,500 levels while resistance is seen at Rs 48,350 levels,” Kedia added.

Going ahead, the yellow metal is expected to trade sideways to negative, according to Kedia.

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