Gold prices in India fell for the second day. On MCX, gold futures contracts were down 0.17% to ₹38,025 per 10 grams, extending their 0.3% Friday's loss. Silver however bucked the trend. Silver futures on MCX were up 0.54% to ₹45,700 per kg. Gold prices have fallen significantly after hitting new highs last month. They are now down about ₹2,000 per 10 gram from record highs of about ₹40,000. Silver too has fallen sharply from its last month's highs.
In spot markets too, prices of 24 Karat in Delhi dipped marginally by ₹30 to ₹38,955 per 10 gram, Press Trust of India reported, citing HDFC Securities. Silver prices, however, moved up by ₹150 to ₹46,750 per kg.
In global markets, gold prices edged higher to $1,492.04 per ounce. Market participants are awaiting developments in the US-China trade talks and Brexit. The US Federal Reserve also meets at the end of the month. Silver rose sharply by 1% to $17.72 per ounce.
With just 10 days left until the UK is due to leave the EU on October 31, the divorce is again in disarray as Britain's politicians argue over whether to leave with a deal, exit without a deal or hold another referendum.
Analysts say that gold prices could be choppy in the near term. Reuters data showed hedge funds and money managers cut their bullish positions in COMEX gold and silver contracts in the week to October 15.
Meanwhile, a new tranche sovereign gold bonds opened for subscription today at issue price of ₹3,835 per gram of gold. For investors applying online and making the payment through digital mode, the issue price is ₹3,785 per gram, after accounting for a discount of ₹50 per gram. (With Agency Inputs)