Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Tuesday after the international spot prices rose to near a five-month high amid a weak US dollar and high inflation, analysts said.

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At 11:40 am, gold futures for August delivery rose 0.61 percent to Rs 49,650 per 10 grams as against the previous close of Rs 49,349 and the opening price of Rs 49,461 on the MCX. Silver July futures traded 1.24 percent higher at Rs 72,793 per kg. The prices opened at Rs 72,500 as compared to the previous close of Rs 71,898 per kg.

“A weak US dollar and inflation concerns are supporting gold prices. The slower pace of growth in China and hopes of an increase in physical demand for gold in India is also lifting the yellow metal prices,” said Ajay Kedia, director, Kedia Advisory.

International gold prices scaled a near five-month high on Tuesday, driven by a weaker dollar and growing inflationary pressures, while investors awaited more US data to gauge the extent of global economic recovery, said a Reuters report.

Spot gold was up 0.1 percent at $1,910.24 per ounce. US gold futures rose 0.4 percent to $1,913.00.

The dollar index was down 0.2 percent against its rivals, making gold less expensive for other currency holders. The US unit registered its second consecutive monthly loss.

Market participants will now focus on key US economic readings, including non-farm payrolls data due on Friday.

“The bias for precious metals remains positive. Gold prices above $1,900 level look strong and may test $1,938,” Kedia said.

“On MCX, resistance for gold is placed at Rs 49,950 and support is seen at Rs 49,200. Silver may face resistance at Rs 74,200 and support at Rs 71,700,” he added.

Here are gold rates across major cities:

Here are silver rates across major cities:

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