Gold prices fell on Wednesday after the announcement of the Covid vaccine by Russia and gains in the dollar. The safe haven asset has gained 33 per cent so far this calendar year.

On Tuesday, spot prices of the precious metal fell below the $2000-per-ounce-mark and again came under pressure on Wednesday to fall below $1900.

At the MCX, gold futures fell below the Rs 50,000 mark in early trades, though it recovered to close with gains of Rs 428 at Rs 52,357 per ten grams.

In Calcutta, pure gold closed down Rs 2,860 at Rs 53,310. Analysts, however, feel that the prices may still be firm towards the medium term.

“Concerns of a US-China tussle, a rapid increase in the virus and other uncertainties still hover, supporting the bullish story from a medium term perspective,’’ Navneet Damani of Motilal Oswal Financial Services said.

According to Rahul Gupta of Emkay Global Financial Services, safe haven demand will boost gold prices.