Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Friday following gains in international spot prices led by a drop in the US dollar and lower bond yields.

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At 11:30 am, gold futures for August delivery rose 0.23 percent to Rs 49,312 per 10 grams as against the previous close of Rs 49,198 and the opening price of Rs 49,283 on the MCX. Silver futures traded 0.56 percent higher at Rs 72,402 per kg. The prices opened at Rs 72,249 as compared to the previous close of Rs 71,999 per kg.

“The global gold prices despite higher CPI and inflation data in US has bounced off their session low clearly shows the investors are confident that Federal Reserve will not be in a hurry to tighten interest rates anytime soon. The focus will now be on the Fed’s monetary policy for more clues about the central bank’s stance on tapering its massive stimulus,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.

International gold prices edged above $1,900 per ounce level on Friday, supported by a pullback in the dollar and lower bond yields, after data showing a rise in US inflation was viewed inadequate to alter the Federal Reserve’s easy monetary policy, a Reuters report said.

Spot gold was up 0.1 percent at $1,900.51 per ounce. Prices have risen more than 0.5 percent this week. US gold futures rose 0.3 percent to $1,902.90 per ounce.

The benchmark US Treasury yields dropped to a three-month low, reducing the opportunity cost of holding non-interest bearing bullion.

The dollar index, meanwhile, fell 0.1 percent after hitting a near one-week high in the previous session.

“Gold prices are trying to bounce off their session lows, following a stronger than expected price in US consumer prices. Both the precious metals are ready for some upside movement as per daily technical chart,” said Amit Khare, AVP- Research Commodities, Ganganagar Commodities.

Khare advises traders to go long in small dips and focus some important technical levels given below for the day:

August Gold closing price Rs 49,198: Support 1 – Rs 48,850; Support 2 – Rs 48,550; Resistance 1 – Rs 49,550; Resistance 2 – Rs 50,000

July Silver closing price Rs 71,999 Support 1 – Rs 71,200; Support 2 – Rs 70,500; Resistance 1 – Rs 72,700; Resistance 2 – Rs 73,700

Here are gold rates across major cities:

Here are silver rates across major cities:

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