Gold prices in India traded lower on the Multi Commodity Exchange (MCX) Thursday falling below Rs 52,500 while silver prices dropped over 1 percent.

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At 11:10 am, gold futures for October delivery fell 0.97 percent or by Rs 513 to Rs 52,109 per 10 grams as against the previous close of Rs 52,622 and opening price of Rs 52,550 on the MCX. Silver futures traded 1.22 percent lower at Rs 67,137 per kg. The prices opened at Rs 67,570 as compared to the previous close of Rs 67,963 per kg.

“Gold prices continue to see profit booking. The US Federal Reserve’s meeting minutes failed to provide support to US bond yields. However, bleak global economic outlook and escalating US-China trade tensions may support yellow metal,” said Jigar Trivedi, Fundamental Research Analyst at Anand Rathi.

In the global market, gold bounced back from the previous session's hefty losses after the US Federal Reserve raised concerns that a recovery from the coronavirus-induced economic slump faced a highly uncertain path, weighing on risk sentiment, a Reuters report said.

Spot gold was up 0.9 percent at $1,946.09 per ounce, after declining more than 3.5 percent to a near one-week low on Wednesday. US gold futures fell 0.9 percent to $1,952.90.

The Federal Reserve expressed concern about the recovery of the US economy and interest rates were expected to be soft till 2021.

The yield on benchmark 10-year Treasury notes fell slightly while the dollar index, which reflects the greenback's value against six leading trading currencies, steadied at 92.983.

“Gold may find support $1,938 level and resistance at $1,960 level. On MCX, support is palced at Rs 51,800-52,000 levels while resistance at Rs 52,350-52,550 levels,” Trivedi added.

Going ahead, gold price is expected to remain volatile ahead of the release of macroeconomic data stateside.

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