Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Wednesday tracking positive momentum in the international spot prices as rising coronavirus cases and bleak economic growth forecasts increased safe-haven appeal for the yellow metal, analysts said.

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At 11:40 am, gold futures for August delivery rose 0.12 percent to Rs 48,821 per 10 grams as against the previous close of Rs 48,762 and opening price of Rs 48,814 on the MCX. Silver futures traded 0.05 percent higher at Rs 50,389 per kg. The prices opened at Rs 50,333 as compared to the previous close of Rs 50,364 per kg.

“Increasing coronavirus cases and increase in geopolitical tension between US, China, India and Iran are also supportive for bullion. Lower growth forecasts provide fuel to the bullion. We expect bullion may trade positive in the short term,” said Anuj Gupta, DVP Commodities and Currencies Research, Angel Broking Ltd.

International gold prices surged to its highest in nearly 8 years as mounting fears of a resurgence of new coronavirus cases kept safe-haven demand for gold alive, setting the precious metal on path for its biggest quarterly gain since March 2016, Reuters reported.

Spot gold jumped 0.5 percent to $1,779.44 per ounce. The session high was $1,785.46, its highest since October 2012. US gold futures settled up 1.1 percent at $1,800.5.

“For intraday perspective, traders can buy gold at Rs 48,600 to Rs 48,700 levels with the stop loss of Rs 48,300 levels and for the target of Rs 49,100. And silver traders can buy at Rs 50,200 to Rs 50,300 levels with the stop loss of Rs 49,700 levels and for the target of Rs 51,000 levels,” Gupta added.

Meanwhile, Indian rupee traded marginally lower against the US dollar, supporting the bullion prices.

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