Gold prices today fall for second time in three days, silver rates slump1 min read . Updated: 20 Dec 2019, 03:01 PM IST
- Gold rates are expected to remain in a range in the near term
- Indian government earlier this week imposed some restrictions on gold imports
Gold prices in India edged lower today, tracking muted global cues. On MCX, February gold futures fell 0.19% to ₹38,035 per 10 gram, declining for the second time in three days. Tracking gold, silver rates also fell sharply today. Silver March futures on MCX declined 0.30% to ₹44,666 per kg. Reliance Securities in a note today said that the February gold futures have support in the ₹37,729 to ₹37,838 zone while they face resistance at ₹38,040 to ₹38,148.
March silver futures have support in the ₹44,340 to ₹44,423 zone while faces resistance at ₹44,537 to ₹44,627 zone, the brokerage added, saying that it expects both gold and silver to trade sideways in the near term.
In global markets, gold prices edged lower amid increased risk appetite after US Treasury Secretary Steven Mnuchin said the United States and China would sign Phase one trade pact early next year. Spot gold prices edged 0.1% lower to $1,478.00 per ounce. China's Finance Ministry also unveiled a new list of import tariff exemptions for a duration of one year starting December 26 for six chemical and oil products from the United States.
Positive news from trade front today pushed Asian equity markets lose to the 18-month high. Investors awaited the release of US gross domestic product data.
Hareesh V, head of commodity research at Geojit Financial Services, also expects gold prices to remain choppy in the near term.
Analysts expect gold to remain in range in the near term as investors await further clarity and fresh triggers from key economic data.
Meanwhile, the Indian government earlier this week imposed restrictions on import of precious metals, amid rising inward shipments of gold.
Import of gold in any form has been placed in "restricted" category from the "free" category, according to a notification issued by the Directorate General of Foreign Trade.
"Import policy of gold in any form, other than monetary gold and silver in any form, is amended from 'Free' to 'Restricted'; import is allowed only through nominated agencies as notified by RBI (in case of banks) and DGFT (for other agencies)," the directorate said.
Gold imports rose 6.6% to $2.94 billion in November from $2.76 billion a year-ago. Earlier this year, the government had increased import duty on gold to 12.5%, from 10%. (With Agency Inputs)