BackGold prices rise today but still down ₹2,200 per 10 gram in two months
Expectations of a US-China trade deal has weighed on gold ratesSilver prices have also fallen sharply from recent highs
PremiumGold prices edged higher today in India, tracking a recovery in global rates and a weak rupee. On MCX, gold prices rose 0.35% to ₹37,820 per 10 gram. Tracking gold, silver prices rose 0.6% on MCX to ₹44,137 per kg. A similar trend was seen in spot markets. Prices of 24 karat gold in Delhi rose ₹118 to ₹38,678 per 10 gram while silver prices advanced ₹293 to ₹45,263 per kg, Press Trust of India reported, citing HDFC Securities.
After the recent correction, gold prices in India are down about ₹2,200 from its early September highs of about ₹40,000 per 10 gram. Jewellers have reported some increase in retail demand in India after the price correction, according to Reuters.
In global markets, gold prices edged higher after last week's sharp fall. Investors remained cautious amid mixed signals from US-China. Disappointing China factory data provided support to gold prices at lower levels. Spot gold was up 0.3% at $1,462.46 per ounce, after touching a three-month low in the previous session. China's producer prices fell the most in more than three years in October.
Reflecting the cautious mood, investors moved to the sidelines. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 1.44% to 901.19 tonnes on Friday from Thursday's 914.38 tonnes.
US and China officials last week said that a rollback of some tariffs had been agreed as part of a preliminary deal, lifting global equity markets, but US President Donald Trump later denied any such agreement.
The trade war along with monetary policy easing from global central banks have pushed gold prices up nearly 14% in global markets.
In India, they have risen they have risen 20% due to higher import duty and the depreciation of the rupee against the US dollar.
The rupee today fell to a one-month low of 71.54 against the US dollar.
Hedge funds and money managers cut bullish positions in COMEX gold and silver contracts in the week to November 5, Reuters reported, citing US Commodity Futures Trading Commission (CFTC). "Gold prices have retreated sharply as optimism for a China US trade deal boosted risk-on sentiment, denting bullion's appeal. But uncertainty on trade deal still prevailed as US President Trump ruled out any plan to roll back tariffs yet," Yes Securities said in a note.
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