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Business News/ Markets / Commodities/  Gold prices fall for second today, down over 2,000 from highs; silver decline
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Gold prices fall for second today, down over ₹2,000 from highs; silver decline

A pullback in global oil prices eased inflationary concerns, pushing gold prices lower
  • Silver also followed suit, suffering more losses than gold
  • Gold, silver price today: On MCX, gold prices traded near ₹37,800 per 10 gram while silver at ₹46,600 a kgPremium
    Gold, silver price today: On MCX, gold prices traded near 37,800 per 10 gram while silver at 46,600 a kg

    Gold prices declined today for the second day in Indian markets as a pullback in global oil prices took some edge off safe-haven assets. On MCX, October gold futures prices fell 0.6% to 37,786 per 10 grams. After the two-day decline gold prices are now down over 2,000 than their record highs of 39,885 hit earlier this month. Tracking a decline in gold, silver prices on MCX fell sharply today, down 1.5% to 46,633 per kg. Silver had also hit a record high of 51,489 earlier this month. They are now down 4,800 per kg from record highs.

    In spot market, prices of 24 Karat gold dropped 215 to 38,676 per 10 gram in Delhi while silver declined by 770 to 47,690 per kilogram, Press Trust of India reported, citing HDFC Securities.

    In global markets, gold prices were steady today, marginally above the $1,500 per ounce as investors remained on the sidelines ahead of US Federal Reserve's policy announcement later in the day. Analysts expect the Fed to deliver a 25-basis-point rate cut today. Gold was steady at $1,502.26 an ounce but silver prices fell 0.4% to $17.93 an ounce. Gold prices in global markets had risen on Monday and Tuesday following an increase in risk-averse sentiment after an attack on Saudi oil facilities.

    Earlier this month, gold prices hit a six-year high of $1,557 in global markets as slowing global growth and risks posed by US-China trade war prompted many central banks to ease monetary policy. In July, US Federal Reserve cut policy rate for first time in more than a decade and now investors are waiting to see if the rate cuts would be sustained.

    Brent futures, the global oil benchmark which jumped to just shy of $72 a barrel earlier this week, cooled significantly to about $64 a barrel today, as Saudi Aramco said it had revived 41% of capacity at a key crude-processing complex days after drone attacks on its oil facilities rocked global energy markets.

    In India, gold prices are up about 20% so far this year as rupee's depreciation against US dollar, a rise in import duty and a global rally pushed up domestic rates. However, the sharp price rise has hurt domestic demand of jewellery. Jewellers have also seen higher inflows of old gold jewellery, promoted by the price rally. Gold imports in India slumped over 60% in August.

    Kotak Securities analysts say that a sharp spike in crude oil price has also boosted inflationary concerns but it may materialise only if there is a prolonged supply disruption.

    They expect gold prices to remain sideways in near term as investors await more clarity on central bank stance, geopolitical situation in Middle East and US-China trade dispute. However, they say, gold prices could remain supported on expectations of dovish central bank stance and global growth worries. (With Agency Inputs)

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    Published: 18 Sep 2019, 09:16 AM IST
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