Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Monday and analysts believe that the short-term trend for the yellow metal to remain negative. Silver prices also declined by half a percent on domestic bourses.

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At 11:50 am, gold futures for October delivery fell 0.41 percent to Rs 51,505 per 10 grams as against the previous close of Rs 51,715 and opening price of Rs 51,650 on the MCX. Silver futures traded 0.62 percent lower at Rs 67,455 per kg. The prices opened at Rs 67,888 as compared to the previous close of Rs 67,877 per kg.

“Gold consolidated and is expected to trade with a sideways to negative bias. In the international market, prices are unable to breach $1,970 level. Positive developments over COVID-19 vaccine and recent strength in equity markets are restricting upside in gold for short term,” said Amit Sajeja. AVP Research - Commodities & Currencies at Motilal Oswal.

International gold prices edged higher on Monday, helped by a weaker dollar while investors looked forward to speeches by Federal Reserve policymakers due this week for further clues on the US central bank's approach to inflation.

Spot gold rose 0.2 percent to $1,952.59 per ounce. US gold futures inched 0.1 percent lower to $1,959.40.

The US Federal Reserve last week kept interest rates unchanged and pledged to keep rates near zero levels for some time to reach 2% inflation target lent support to the yellow metal prices. The speeches by Fed committee members, including Chairman Jerome Powell later this week will be eyed.

“The short-term trend in gold remains negative. Hence, selling gold on the rally is advised. Immediate resistance is placed at Rs 51,800 level while support is seen at Rs 51,000,” Sajeja said.

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