Home >Markets >Commodities >Gold prices fall today for second time in three days, silver rates slide
Gold price today: On MCX, gold prices were below  ₹38,350 per 10 gram
Gold price today: On MCX, gold prices were below 38,350 per 10 gram

Gold prices fall today for second time in three days, silver rates slide

  • Muted global prices and a higher rupee weighed on domestic gold rates
  • Market experts expect gold prices to remain choppy in near term

Gold prices today fell for second time in three days amid muted global rates and a higher rupee against the US dollar. On MCX, gold contracts were down nearly 117 to 38,355 per 10 gram. Gold prices rose 155 on Monday, following a 263 decline on Friday. Silver also struggled today, falling 0.3% to 46,475 per kg. In global markets, gold prices fell for the second day today as optimism that China and US are closer to signing a trade accord.

This increased the appetite for riskier assets like equities, weighing on the prices of safe-haven gold. Spot gold was down marginally at $1,507.31 per ounce. The US dollar also rose to one-week high against a basket of other currencies, also weighing on gold. A stronger dollar makes gold expensive for buyers holding other currencies, thus weighing on the demand for the yellow metal.

Optimism on trade deal has lifted risk sentiments in markets and thus weighed on gold prices, Geojit Financial Services said in a note.

The Financial Times newspaper, citing sources, reported that the White House was considering rolling back the September 1 tariffs, which cover some clothing items, flat-screen televisions, smart speakers and Bluetooth headphones.

Overnight, the US stock markets set another record high, extending their streak of new highs.

The US Federal Reserve last month cut interest rate for the third time this year but signaled a pause. Recent data from US and China has lifted sentiment in equities. Lower interest rates help non-interest yielding assets like gold.

Geojit Financial Services expects global gold prices to remain rangebound in near term. "Hopes of an immediate trade deal and a bunch of recent positive economic releases eased apprehensions of further economic slowdown and slightly boosted the market optimism. Increased global economic confidence perhaps reduce gold’s safe haven demand," the brokerage said.

However, growing geopolitical tensions are likely to offer lower level support to prices, it added.

Gold prices in India are also expected to remain choppy with a mild negative bias, says Geojit Financial Services

Strengthening Indian rupee and moderate domestic demand due to prevailing high prices may weigh the sentiments, it added.

Despite the festive month of Dhanteras and Diwali, India's gold imports in October as high prices dampened festive buying in the world's second-biggest consumer of the metal, Reuters reported, citing sources. India imports most of its gold requirement through imports.

Lower imports by India could cap gains in global prices, say experts. (With Agency Inputs)

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.

Edit Profile
My Reads Redeem a Gift Card Logout