Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Tuesday following gains in international spot prices on weak US dollar. Silver prices also increased by over 2 percent.

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At 11:33 am, gold futures for October delivery surged 0.80 percent to Rs 53,700 per 10 grams as against the previous close of Rs 53,275 and opening price of Rs 53,415 on the MCX. Silver futures traded 2.28 percent higher at Rs 70,731 per kg. The prices opened at Rs 69,445 as compared to the previous close of Rs 69,155 per kg.

“Gold prices rose on the back of weakness in the US dollar and concerns over the second wave of coronavirus infections in Europe. The trend is expected to be bullish going ahead,” said Ajay Kedia, director, Kedia Commodity.

International gold prices edged up on Tuesday on the back of a weaker dollar, although gains were capped by a rally in US equities and signs of a recovery in global economic activity, a Reuters report said.

Investors now await the minutes from the US Federal Reserve's last policy meeting due for release on Wednesday.

Gold futures breached $2,000 per ounce level and the upmove is likely to continue. The prices may test $2,040 levels, Kedia added.

“On MCX, support for gold is seen at Rs 53,100 while the next target is placed at Rs 54,800 level,” Kedia said.

Meanwhile, silver prices jumped more than 2 percent supported by a rally in base metals. Silver price may test Rs 73,500 going ahead, according to Kedia.

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