2 min read.Updated: 19 Sep 2019, 05:30 PM ISTStaff Writer( with inputs from PTI )
Global gold prices are also down sharply from six-year highs hit earlier this month
Silver has suffered bigger declines as compared to gold
Gold prices today were on a declining trend in India, extending losses to the third day. On MCX, October gold futures prices were down 0.66% to ₹37,600 per 10 gram amid choppy global prices. Silver suffered more losses. Silver prices on MCX were down 0.81% to ₹46,215 per kg. After three days of losses, gold prices are now down about ₹2,300 from their record high price of ₹39,885, hit earlier this month. Silver is down over ₹5,000 from its highs of ₹51,489 a kg.
Gold and silver prices in India have remained choppy over the past few days since hitting record highs earlier this month. Volatile global prices and rupee have also kept domestic price of gold and silver choppy.
In spot market, price of 24K gold fell ₹270 to ₹38,454 per 10 gram in Delhi while silver rates tumbled ₹380 to ₹47,310 per kilogram, Press Trust of India reported, citing HDFC Securities.
In global markets, gold prices were today marginally down at $1,492.15 an ounce. Globally, gold prices had surged to a six-year high above $1,550 earlier this month on fears that the trade war between US and China would further slowdown growth. However, gold prices have eased from that level as US and China extended some tariff concessions ahead of their high-level talks next month. Hopes of further monetary easing from global central banks have supported gold prices on the downside.
As widely expected, the US Federal Reserve cut interest rates again on Wednesday. Lower interest rates boost the appeal of non-interest yielding assets like gold. But mixed signals from the Fed about future easing kept gold investors cautious.
Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies.
The holding of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.37% to 883.60 tonnes on Wednesday.
Oil prices have fallen sharply over the past two days after surging nearly 20% on Monday. Saudi Arabia's energy minister said the country would restore its lost production by month-end. Gold is considered a hedge against oil-led inflation.
Gold imports into India has fallen sharply as high prices continue to keep a lid on demand. Besides, there has been a higher supply of old jewellery as customers cash in on high prices, say some jewellers. Despite the recent correction, gold prices are up about 20% so far this year. (With Agency Inputs)
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Never miss a story! Stay connected and informed with Mint.
our App Now!!