Gold prices in India fell today, tracking weak global rates and a higher rupee. On MCX, prices of gold futures for December delivery fell 0.20% to 37,650 per 10 gram, extending losses to the sixth day in a row. Tracking gold, silver prices on MCX on edged lower, falling 0.45% to 44,036 per kg. In global markets, gold prices eased today, falling to a two-week low on optimism that US and China could reach a trade deal soon.

Spot gold prices were down 0.1% to $1,454.19 per ounce. The improved risk-on sentiment has pushed global stock markets higher, denting the appeal of safe-haven gold. China had over the weekend said that it would improve protections for intellectual property rights. Silver shed 0.3% to $16.85 per ounce, after touching a one week low.

"Selloffs in gold prices may continue as prices cleared the support of $1,455. Next downside level is seen at $1444, which needs to be cleared for continuation of further liquidation. Else, may see mild recovery moves but unlikely to move past $1479," Geojit Financial Services said in a note.

Gold is considered a safe asset in times of political and economic uncertainty. In global markets, gold prices are up 13% so far this year due to the US-China trade spat and worries about its impact on global economic growth. In India, gold prices are up about 19% so far this year, higher than the increase in global rates, due to the import duty hike and rupee's depreciation against the US dollar.

"Gold prices are trading weak after the US and China expressed willingness to sign a 'phase-one' trade deal by the year-end. Increasing optimism over US-China trade talks has helped equities and the Dollar index," says Abhishek Bansal, chairman of ABans Group of Companies.

The US Federal Reserve so far this year has cut interest rates three times this year before deciding to pause. Lower interest rates reduce the opportunity cost for holders of bullion, an asset that brings no interest.

The US Federal Reserve chairman Jerome Powell on Monday said the central bank will "respond accordingly" if economic data leads to a "material reassessment" of their outlook. (With Agency Inputs)

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