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On MCX, April gold contracts were trading lower by 0.36% at Rs 44,788 for 10 grams in morning trade. May silver futures were trading 0.75% lower at Rs 67,490 a kilogram.
The dollar index too has crossed the 91-mark again which also has trigged heavy selling in both the precious metals.
Analysts say that the correction in gold prices could help boost physical gold demand in India, especially with the view that more marriages will take place this year as many people have postponed plans due to Covid19.
Gold prices are also expected to decline further on the back of rise in dollar.
Anuj Gupta, Deputy Vice President, Commodity and Currency Research at Angel Broking said,” For today traders can go for ‘sell’ in gold at Rs 44,900 levels with the stop-loss of Rs 45,100 for the target of Rs 44,500 and they can also go for ‘sell’ in silver at Rs 68,000 with the stop-loss of Rs 68,800 for the target of Rs 66,500 levels”.
Vandana Bharti, AVP, Commodity Research, SMC Global is also of the view that gold prices are expected to be under pressure and may also slip below the Rs 44,000 level on MCX futures.
“Traders can ‘Sell’ April gold futures at Rs 44,750 with a target of Rs 43,950 and a stop-loss of Rs 44,950”, she said.