Gold prices drop as dollar continues upward movement, white metal down 1%

"At MCX, gold is having support at Rs 50,880-Rs 50,720 and resistance at Rs 51,250-Rs 51,480 while silver is having support at Rs 58,000-Rs 57,550 and resistance at Rs 59,000-Rs 59,660," he said.

Kumar also suggested selling gold below Rs 51,000 with a stop loss of 51,200 for the target of Rs 50,700.

The drop in metal prices came as the dollar index continued its upward movement for the sixth session in a row. However, at the time of writing this report, US Dollar Index Futures was 0.09 percent lower at 113.023. The rupee edged higher to 82.28 against the US dollar on Wednesday.

Moreover, in early trade, crude oil prices fell amid a rise in COVID-19 cases in China that triggered fears of slowing global demand. Brent crude futures were down 0.6 percent at $93.8 per barrel initially.

Meanwhile, the Sensex and the Nifty50 rose on Wednesday after three days of losses in a rebound aided by financial, IT and oil and gas shares. Besides, the global markets have been under pressure with the Dow Jones down almost 10 percent in the past month and the Nasdaq correcting 15 percent in the same period.