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Business News/ Markets / Commodities/  Gold prices today down for 3rd day, down 2150 per 10 gram from last month highs
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Gold prices today down for 3rd day, down ₹2150 per 10 gram from last month highs

An improvement in risk-on sentiment has weighed on gold prices
  • A new tranche of gold bonds have also opened for subscription
  • Gold price today: On MCX, gold prices are down at ₹37,850 per 10 gramPremium
    Gold price today: On MCX, gold prices are down at 37,850 per 10 gram

    Gold prices in India fell for third day in a row, tracking muted global cues. On MCX, gold prices were down 0.11% to 37,850 per 10 gram. After hitting highs of about 40,000 last month, gold prices have fallen sharply and are now about 2,150 per gram from their record highs. Silver prices were also muted today, down 0.1% to 45,387 per kg. In global markets, gold prices were flat at $1,484.12 per ounce as global equity market sentiment improved as stocks cheered progress in trade talks between the US and China.

    Gold however found support from a lack of clarity in the negotiation details.

    "Gold recently has given investors some respite to enter as prices have corrected 2,000 and now floating near 38000 from last month’s high of 39850. With Diwali less than a week away it looks likely investors shall get ample time to buy the gold in this range of 38000 levels as the metal looks steady. Internationally Gold has recently stayed in a tight $1,475-$1,500 range as investors await greater clarity on both Brexit and the U.S.-China trade talks," said Jateen Trivedi of LKP Securities.

    China's vice foreign minister Le Yucheng said today that the two countries have have achieved some progress in their trade talks. Earlier, US President Donald Trump voiced optimism about a deal, while White House adviser Larry Kudlow said tariffs on Chinese goods scheduled for December could be withdrawn if talks go well.

    The improvement in risk-on sentiment has weighed on gold prices. British Prime Minister Boris Johnson failed to get a vote on his Brexit deal and will try again today to get the first stage of a withdrawal bill through Parliament.

    Analysts say that gold is likely to draw support from the possibility of another 25 basis point rate cut from the Federal Reserve later this month. Lower interest rates reduce the opportunity cost of holding non-yielding bullion.

    Silver prices also slipped today in global markets, falling 0.1% to $17.55 an ounce and snapping a four day gaining streak.

    In domestic spot markets, demand from jewellers also remained muted, Geojit Financial Services said in a note. Despite the recent correction, gold prices are up about 20% so far this year, weighing on retail demand. A new tranche of gold bonds have opened for subscription at issue price of 3,835 per gram of gold ahead of Dhanteras and Diwali. Investors who apply online and make payment online get a discount of 50 per gram. (With Agency Inputs)

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    Published: 22 Oct 2019, 11:34 AM IST
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