Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Wednesday following a positive trend in the international spot prices that rose near a 4-month high on a weak US dollar.

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At 11:15 am, gold futures for June delivery rose 0.25 percent to Rs 48,989 per 10 grams as against the previous close of Rs 48,867 and the opening price of Rs 49,067 on the MCX. Silver futures traded 0.57 percent higher at Rs 72,551 per kg. The prices opened at Rs 72,500 as compared to the previous close of Rs 72,140 per kg.

“Weak US dollar and lower US Treasury yields are supporting the gold prices. The yellow metal has breached an important level of $1,900 and the trend in both the precious metals looks positive,” said Ajay Kedia, director, Kedia Advisory.

International gold prices rose above the key psychological level of $1,900 per ounce on Wednesday, helped by a weaker dollar and growing inflation concerns after Federal Reserve officials maintained a dovish stance over rates, said a Reuters report.

Spot gold rose 0.4 percent to $1,906.99 per ounce, its highest level since January 8. US gold futures gained 0.5 percent to $1,906.60 per ounce.

The dollar index was pinned near a 4-1/2-month low against its rivals, making gold cheaper for other currency holders.

Benchmark US Treasury yields were hovering near a two-week low, reducing the opportunity cost of holding non-interest bearing gold.

“On MCX, gold may face resistance at Rs 49,550 and support is placed at Rs 48,600. Support for silver is seen at Rs 71,650 and resistance at Rs 74,200,” Kedia added.

Here are gold rates across major cities:

Here are silver rates across major cities:

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