Gold prices in India declined on the Multi Commodity Exchange (MCX) Friday following a muted trend in the international spot prices amid a recovery in the US dollar.
On Friday, Gold price fell to Rs 47,900 from Rs 48,010, while silver price was trending at Rs 68,950 per kg, according to the Good Returns website.
“The gold prices fell as the US dollar rebounded and the US Consumer Price Index for January came in lower than expected. The bias for the precious metal remains negative. The US jobs data is also expected to be supportive for the dollar and hence, gold may see further weakness,” said Ajay Kedia, director, Kedia Commodity Comtrade.
He further added that “On MCX, gold remained below the key resistance level of Rs 48,300 and unless it breaches this level, the trend is likely to be negative and it may test Rs 47,400 level,” Kedia.
For silver, support is seen at Rs 66,800 level, while resistance is placed at Rs 69,500 level, Kedia added.
International gold inched lower on Thursday as the dollar recovered and softer US inflation data that further dampened the bullion’s appeal as a hedge against inflation, a Reuters report said.
Spot gold fell 0.3 percent to $1,835.99 per ounce, after hitting a more than one-week high on Wednesday. US gold futures slipped 0.3 percent to $1,836.60.
The dollar attempted a rebound from a two-week low hit in the previous session, while the benchmark 10-year US Treasury yields also steadied.