Gold prices edged lower today in Indian markets on the first day of the new year. On MCX, February gold futures prices today slipped 0.17% to 39,040 per 10 gram to log their second decline in three days. Tracking gold, silver prices also slipped today. MCX silver futures rates declined 0.42% to 46,515 a kg. In global markets, gold prices on Tuesday rose to a three-month high to clinch the best annual gains since 2010.

"Gold may may witness some profit booking at higher levels. US markets are closed today. Gold can dip lower to 38,900 while taking resistance near 39,100. Silver can dip towards 46,200 while taking resistance near 46,800," SMC Global Securities said in a note.

Gold prices in global markets rose 19% in a year marked by global economic jitters and trade frictions. Gold also got a boost as central banks globally embraced looser monetary policy to boost growth. Gold-buying from key central banks and exchange-traded funds have also helped support prices. Spot gold climbed as much as 0.7% to $1,525.38 an ounce on Tuesday. In other precious metals, silver rose 15% last year, platinum 22% while top-performer palladium surged 54%.

US President Donald Trump on Tuesday said the Phase 1 trade pact with China would be signed on January 15 at the White House, though confusion remains about details of the agreement.

Back in India, gold logged 25% gain last year, prices further boosted by an hike in import duty. Gold prices in India include 12.5% import duty and 3% GST.

Despite sharp gains last year, some analysts remain bullish on gold, citing global tensions,

"The year 2019 witnessed gold coming out of the six year trading range. Although it won’t match 2019 gains we expect a gain of 12% to 13% in 2020. Bullish factors include central banks buying as the low interest rate environment will push the bankers towards safety, weakness in dollar index and a surging global debt," said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

On the other hand, JPMorgan Asset Management recently cautioned that bullion may not offer sound portfolio protection, making a case for a risk-on investment allocation for 2020 as the global economy gathers momentum in the wake of the recent slowdown.

"A lingering sense of caution over trade developments and lack of details on the Phase 1 deal may also stimulate appetite for gold during Q1 of 2020," SMC Global Securities said in a note. (With Agency Inputs)