Gold prices today continued their choppy movement in India, following a similar global trend. On MCX, gold futures fell 0.64% to ₹38,003 per 10 gram. In the previous session, gold prices had jumped about 1% or ₹360, following a 1.6% decline on Tuesday. Gold prices are now down about ₹2,000 from record highs of about ₹40,000 in early September. Silver prices also remained choppy this week and on MCX, rates were down 0.6% at ₹45,389 a kg.
In global markets gold prices remained marginally higher at 1,490.89 per ounce. Worries that the trade deal between the United States and China could get delayed provided some support to gold prices. Reuters, citing a senior official of the Trump administration, reported that a meeting between US President Donald Trump and Chinese President Xi Jinping to sign the agreement could get delayed as discussions continue over terms and venue.
On the downside, gold has support at $1475 while it faces immediate resistance at $1,510 on the upside, Geojit Financial Services said in a note.
Analysts say that gold prices are likely to remain in a range as investors remain in a wait-and-see-mode.
The US-China trade war has roiled financial markets and raised fears of a global economic slowdown, boosting the price of gold by 16% so far this year in global market.
In India, gold prices have risen more than 20% so far this year due to the hike in import duty and rupee's depreciation against the US dollar.
Monetary policy easing from the US Federal Reserve has also boosted gold prices. Last month, the US central bank cut interest rates for the third time this year but signalled that there would be no further reductions unless the economy takes a turn for the worse. A top Fed official on Wednesday said that the US economy is in a good place but the path of inflation will be important in deciding the future path of interest rates.
Lower interest rates boost the appeal of non-interest yielding assets like gold.
The volatility in the rupee has also kept gold prices choppy. The rupee today fell to 71.11 a dollar as compared to the previous close of 70.98. (With Agency Inputs)