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Gold witnessed a sell-off from higher levels as the bulls failed in keeping it above 48,000. Gold prices fell by Rs 97 to Rs 47,435 per 10 gram in futures trade on Monday as speculators reduced their positions amid low demand.

On the Multi Commodity Exchange, gold contracts for June delivery traded lower by Rs 97, or 0.2 percent, at Rs 47,435 per 10 gram in a business turnover of 10,968 lots.

Analysts attributed the fall in gold prices to trimming of positions by participants. Globally, gold traded 0.10 percent lower at $1,776 an ounce in New York.

Ravindra Rao, CMT , EPAT, VP-Head Commodity Research, Kotak Securities Ltd, said: Although the short-term trend is positive some more corrective move is possible. Resistance for the day is pegged at 47,700 and strong resistance near 48,000. The RSI is close to 50 indicating sideways move. Support is near 47,290 and strong support is close to 47,000. For the day, we expect price to trade with a negative bias until 48,000 holds. Immediate downside objective would be 47290. Only a break above 48,000 might once again give bulls the edge to take it past 48,400.

On Monday, silver rates traded at Rs 687 for 10 grams from Rs 688 on the previous day. On MCX, Silver followed gold as it fell to the support near 68,400. For the day, the trend continues to be sideways to lower until the price is below 69,500. Rao said, the RSI is slightly below 50 which might support the bears. The resistance zones near 68,800-69,000 is where selling might pitch in. Similarly, immediate support is near 68,400 and strong support near 68,000. Going by the above evidences we expect silver to trade in the range of 69,000-68,400. Break of 69,500 or 68,000 would give a direction to price, Rao said.

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