Gold prices on Friday fell below Rs 49,300 per 10 gram in the futures trade. On the Multi Commodity Exchange, the gold contracts on February delivery were traded lower by Rs 158, or 0.32 percent, and at Rs 49,290 per 10 gram in a business turnover of 1,393 lots at 11.53 am. Gold had closed at Rs 49,448 on Thursday and opened up at Rs 49,355 per 10 gram on Friday.
On the other hand, silver prices too fell at MCX. Silver prices for the March delivery were trading lower by Rs 662 or 0.98 percent to Rs 66,638 per kg in a business turnover of 3,146 lots at 12.08 am. On Thursday, silver closed at Rs 67,300 and opened at Rs 67,000 per Kg on Friday.
The rising coronavirus cases across the world and increased lockdown measures in many countries. This had kept the downside capped for the bullion metal.
The COVID relief bill faced a few more problems although some positive news is also yet to hit the market this week, which will be important with policy meets of FED, BOJ, and ECB.
In the international market, gold prices are lower. Spot gold fell 0.3% to $1,863.56 per ounce by 0233 GMT. It retreats from its highest since Jan. 8 hit on Thursday. For the week, it was up by 2% in what would be its biggest weekly gain since the week ended on December 18th. US gold futures eased by 0.1% to $1,863.90, according to a Reuters report.
Gold prices had closed at Rs 48,550 per 10 gm in the previous trade. Silver also shot up by Rs 1,227 to Rs 66,699 per kg, compared to the previous price of Rs 65,472.
The rising coronavirus cases, the US-China tensions, Brexit uncertainty, and a loose monetary policy stance of major central banks were able to support the prices. Rao believes that gold may witness a choppy trade amidst all the mixed cues. He also believed that the general bias might be on the downside.