Gold prices in India recovered today after falling sharply over two days. On MCX, gold for delivery in August contracts rose 0.70% to 34,401, reversing a two-day fall. The October futures contracts also traded higher at 34,610. In global markets, gold prices also rebounded after dipping below $1,400 per ounce on Thursday. Spot gold traded at $1,420.35 per ounce, up 0.79%, buoyed by a weak dollar and uncertainty over global trade. Gold prices had hit a six-year high of $1,438 on Tuesday.

On MCX, gold for delivery in August contracts had come closer to 35,000 on Tuesday, before seeing some profit-taking at higher levels.

Investors are looking for cues from the highly anticipated meeting between US President Donald Trump and Chinese President Xi Jinping this weekend. Investors hopes of a trade deal were dented after White House economic adviser Larry Kudlow said on Thursday that Trump has agreed to no preconditions for the meeting, set to take place on Saturday at the G20 summit in Japan.

Meanwhile, the gem and jewellery industry has sought a reduction in customs duty on gold in the Union Budget for the fiscal 2019-20, to be tabled in Parliament on July 5. Currently, the customs duty on gold is 10%.

Some jewellers fear that gold demand in India could fall this year, dented by higher prices. Lower purchases by India, the world's second biggest consumer after China, could limit a rally in global prices, say analysts.

Ratings agency expects domestic organised jewellery retailers maintain growth of 10-11% over the next three fiscals as against 11.9 per cent growth between FY16-FY19, helped by aggressive promotional schemes and opening of new stores.

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