Gold prices in India traded flat on the Multi Commodity Exchange (MCX) Tuesday on muted trend in international spot prices as tensions between the United States and China and protests in the US lent support while optimism over opening up of economies pressurized the yellow metal prices, analysts said.

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At 11:35 am, gold futures for August delivery rose 0.06 percent to Rs 47,165 per 10 grams as against the previous close of Rs 47,138 and opening price of Rs 47,197 on the MCX. Silver futures traded 0.26 percent lower at Rs 50,480 per kg. The prices opened at Rs 51,235 as compared to the previous close of Rs 50,611 per kg.

“Gold prices were steady as uncertainty over the US and China relations prevailed while risk appetite improved due that led to upbeat risky assets. Buying was witnessed in equity markets along with gold as investors hedged their exposures,” said Amit Sajeja AVP Research - Commodities & Currencies at Motilal Oswal.

In the international market, gold prices on Tuesday held on to last session's more than one-week high on concerns around US-China relations and as rising violent protests in the United States stoked fears of a resurgence in virus cases, while optimism on reopening of economies checked their rise.

Spot gold was flat at $1,739.48 per ounce, as of 0344 GMT. US gold futures rose 0.1 percent to $1,752.10.

In a sign that the worst of the economic downturn from the coronavirus pandemic might be over, US manufacturing activity crawled up slightly from an 11-year low, and China's factory activity unexpectedly returned to growth- in May, Reuters reported.

“Sentiment for the yellow metal remains positive as excess liquidity scenario looks supportive. Gold may see strong support at $1,690 levels and prices may rise to $1,755,” Sajeja added.

On MCX, support for gold prices is placed at Rs 46,800 and can rise towards Rs 47,450 levels, he said.

Meanwhile, the Indian rupee is trading flat at 75.56 per dollar against the previous close of 75.54, amid buying seen in the domestic equity market.