Gold prices today fall for fourth day in a row, silver rates decline1 min read . Updated: 09 Dec 2019, 12:22 PM IST
- Gold prices in India are now down about ₹2,400 per 10 gram in three months
- Silver rates have also fallen sharply
Gold prices in India fell today, extending losses to the fourth day amid muted global trend. On MCX, February gold futures were down 0.30% to ₹37,597. Tracking gold, silver rates also declined. On MCX, silver futures fell 0.20% to ₹43,465. After the latest decline, gold prices in India are now down about ₹2,400 per 10 gram from their September highs of about ₹40,000 per 10 gram. Despite the latest price drop, demand for physical gold was moderate in India last week due to lower than usual wedding season buying, Reuters reported.\
The strength in the rupee against the US dollar also weighed on gold prices in India. The rupee today rose to to 71.15 today against the US dollar as compared to the previous close of 71.20.
In global markets, gold prices were 0.1% higher at $1,460.40 per ounce today, after slumping 1% in the previous session, its biggest one-day drop in a month. Silver was up 0.1% at $16.58 per ounce, after touching its lowest since early August in the last session.
On the US-China trade front, the news flow was mixed. White House economic adviser Larry Kudlow on Friday that the December 15 deadline for a new round of US tariffs on Chinese goods is still in place but the two sides are talking almost daily to reach an interim deal.
Gold is often seen as an alternative investment during times of political and financial uncertainty. On Friday, gold prices had dropped sharply after strong US jobs data showed that the economy is in no danger of stalling.
Gold traders will eye Federal Reserve's next policy meeting, which ends on Wednesday. Analysts expect the US central bank to keep rates steady after cutting interest rates thrice this year.
Investment demand for gold remained muted, reflecting the cautious sentiment among investors. The holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.26% to 886.23 tonnes on Friday.
Goldman Sachs in a recent report said the correction on gold prices has further room to run, the bank is still sticking to its forecast prices will climb to $1,600 over the next year. (With Agency Inputs)