Gold prices in India fell for a second consecutive day, with futures prices on the Multi Commodity Exchange of India Ltd. (MCX) down 0.23% to ₹38,072 per 10 gram. Domestic gold rates are low by Rs 2,000 from last month’s high of Rs 40,000 per gram. Silver too followed gold’s price trend and fell by 0.34% to ₹45,266. Weak global trend and higher rupee affected the domestic gold price. In global markets, the gold prices were affected by the optimism portrayed after US-China trade talks, which further increased the risk appetite. Equity markets across the globe were on the higher side. Spot gold rates were down by 0.2% at $1,491.12 per ounce.
On Thursday, after a 15-month trade war between the world’s two giant economies, the top US and Chinese officials held talks that ended on a positive note. The past few months of the US-China trade war sparked some of the worst fears of recession, which resulted in a sharp increase in the gold process throughout the year.
The ETF of the SPDR Gold Trust’s ETF fell 0.22% to 921.71 tonnes on Thursday from 923.76 tonnes on Wednesday.
Meanwhile, the US Federal Reserve may cut down the interest rates for the third time in the year later this month amid the risks hovering over the economy from the trade war.
On the other hand, the British pound its highest level in two weeks against the US dollars, after the UK and Irish leaders announced that there might be a possible ‘pathway’ for Brexit deal.
As the trade talks between the US and China officials began, the prices of gold have retreated from the recent heights, however, it is still near $1500 per ounce. As per the reports, experts believe that the talks may result in some choppy trade but they do not expect a concrete outcome that may keep gold prices supported and hence buying can be done at lower levels.
However, the drop has sparked some hopes that the retail demand would pick up some pace, especially at a time when the nation is drenched in a festive mood. Following the trend, top brands like Tanishq, Kalyan Jewellers and others have lined up a wide range of offers to lure buyers.
Lastly, the sovereign gold bonds will be available for subscription from today onwards, The government is issuing bonds at ₹3,788 per gram with a discount of ₹50/gram to those who will apply and make payment online. Another tranche of such bonds will be open for subscription around Dhanteras and Diwali.
(With input from agencies)