Gold futures for August delivery traded down by Rs 367 at Rs 47,200 per 10 gms on MCX

Gold futures on the MCX for August delivery traded down by Rs.367 at Rs. 47,200 per 10 gms on Wednesday, reflecting an overnight decline in global gold prices.

The rupee's appreciation also pressured gold prices. The local currency was trading around 4 paise stronger against the dollar.

In the international market, gold prices witnessed range-bound trading on Wednesday. The spot gold was steady near $1,723 per troy ounce.

Gold prices witnessed a correction after US data showed stronger-than-expected retail sales data for May. However, geopolitical tensions over the Korean peninsula and the border standoff between India and China kept the downside limited. Rising coronavirus cases may keep the risk premium higher in gold prices, with the fear of continuing partial lockdown in some parts of the nation.

"We expect gold prices to trade sideways to up with the MCX gold August support at Rs 46,800 (and) resistance at Rs 47,500," said Tapan Patel, a senior analyst (commodities) at HDFC Securities.