Gold price in India slipped today, extending their choppy movement seen over past few weeks. On MCX, gold futures prices slipped 0.35% to ₹38,062 per 10 grams. From its record highs of ₹40,000 hit last month, gold prices are now down about ₹1,950 per 10 gram. Silver prices also dipped, falling 0.7% to ₹45,228 per kg. In domestic spot markets too, prices of 24 Karat gold declined ₹145 to ₹38,925 per 10 gram in Delhi, Press Trust of India reported, citing HDFC Securities. The rupee was flat today against the US dollar at 71.15.
Silver also lost ground in domestic spot markets, falling ₹315 to ₹46,325 per kg. In global markets, gold prices today dipped 0.1% to $1,490 amid mixed cues.
"Gold may continue to trade in a range unless we get clarity on major issues however the general bias may be on the upside amid global growth worries and geopolitical tensions," Kotak Securities said in a note.
Data released today showed China's third-quarter economic growth slowing more than expected to its weakest pace in almost three decades. "China’s industrial production and retail sales data released today showed some improvement but GDP growth data missed expectations. Possibility of Brexit deal and US-China trade progress has also pulled US dollar index to August lows lending support to gold price. ETF investors moved to sidelines awaiting fresh cues," the brokerage added.
Though global equity markets have cheered progress on Brexit, there are doubts if British Prime Minister Boris Johnson will be able secure UK parliament backing for the agreement to take Britain out of Europe on October 31.
Also supporting gold prices, worries surrounding a trade war between the US and China continue to linger.
Gold is steady awaiting clarity on trade and geopolitical issues but growth worries and weaker US dollar has lent some support, Kotak Securities added.
With Dhanteras and Diwali next week, jewellers are hoping that the festive season will give a boost to retail buying after the recent correction in gold prices. Sovereign gold bonds will also open for subscription next week (October 21-25), according to the calendar released by RBI. The issue date of the bonds will be October 30. (With Agency Inputs)