Gold prices in India today remained muted, tracking losses in global rates. On MCX, gold prices fell 0.15% to ₹37,624 per 10 gram today as the exchange opened for trading in the evening session, from 5 pm. They are now down about ₹2,400 per 10 gram from early September highs of around ₹40,000. Trading on MCX was shut for a holiday. Silver prices on MCX also fell 0.22% to ₹43,888. Silver has also corrected significantly from its September highs.
The fall in domestic gold prices reflects a similar fall in global markets. Spot gold prices in global markets were subdued at $1,455.55 per ounce, after falling to its lowest in more than three months in the previous session.
Investors will look for clues into progress in US-China trade talks as US President Donald Trump is expected to speak at the Economic Club of New York later in the day.
Global gold prices have also corrected from six-year highs of near $1,550 per ounce in September, on expectations of a possible US-China trade deal. Equity markets also have rallied.
Gold slumped 3.6% last week for its biggest weekly decline in three years on upbeat equities and optimism surrounding the U.S.-China trade deal.
But uncertainty still prevailed over the trade deal. Last week, US and China officials said that both the countries had agreed to roll back tariffs on each others' goods as part of the first phase of a trade deal, but later Trump denied any such agreement.
The months-long trade war has roiled financial markets and sparked fears of a global economic slowdown, pushing the precious metal more than 13% higher this year.
Some analysts are hopeful that the recent correction in gold prices could give a boost to retail demand in India ahead of the weddings season. (With Agency Inputs)