Gold prices continued their downward movement today, extending losses to the sixth straight day. Gold futures prices on MCX were down 0.05% to ₹37,551 per 10 gram. The latest price decline has pushed gold prices down by about ₹800 per gram in six days. And overall, prices are down about ₹2,450 per gram in three months, from their record highs of about ₹40,000 per gram. Silver prices also edged lower today. On MCX, silver futures fell 0.09% to ₹43,469 per kg.
In global markets, gold prices were steady at at $1,463.59 per ounce. Prices remained subdued ahead of the US Fed's rate decision today and a fast-approaching tariffs deadline on Chinese goods by the US. Silver slipped 0.1% to $16.63 per ounce.
Later in the day, the US central bank will issue the statement of its December policy meeting. Analysts expect Fed to leave interest rates unchanged. Gold traders will await Fed's outlook for the economy, mainly hit by a protracted trade war between China and the US.
"Gold prices are holding in a range before the US Federal Reserve meeting. The US Fed has slashed the target range thrice this year so far, seeing muted inflation and concerns over the US-China trade war," said Abhishek Bansal, Chairman, ABans Group of Companies.
"Gold prices in India are trading negative following strength in the Indian rupee against the dollar. The rupee recovered nearly 1.3% in the last two weeks, and this is putting additional pressure on gold prices," he added.
Traders remained cautious as US President Donald Trump has to decide whether to impose tariffs on nearly $160 billion in Chinese consumer goods later this month. News reports on Tuesday said both US and China are planning for a delay of the December tariffs.
Lower interest rates and economic uncertainty boost the appeal of safe-haven assets like gold.
In global markets, gold prices are up about 14% so far this year amid months-long US-China trade spat, central bank buying and worries over global growth. In India, they are up about 19%, further boosted by import duty hike and the rupee's depreciation against the US dollar. Many financial majors like Goldman Sachs remain bullish on prospects of gold prices for the next year, predicting sharp gains.