Silver rates also fell sharply after seeing sharp gain over previous two days
Many analysts still remain bullish on gold despite the sharp surge in recent days
Gold and silver prices today fell sharply in India amid a decline in global markets and a rebound in rupee against the US dollar. On MCX, gold futures rates fell 0.51% or ₹200 to ₹40,265 per 10 gram. Gold prices had surged over ₹1,200 per 10 gram over previous two sessions amid Middle East tensions and a sharp fall in rupee against the US dollar. Tracking gold, silver rates also saw a decline with futures on MCX falling 0.6% to ₹47,266 per kg.
In global markets, gold prices today slipped from near seven-year highs. Lack of further escalation between the US and Iran led to some profit-taking after the recent run-up in gold prices. Spot gold today fell 0.2% to $1,562.81 per ounce after hitting their highest level in nearly seven years at $1,582.59. Elsewhere, silver slipped 0.5% to $18.06 per ounce.
Reflecting the safe haven appeal of during geopolitical uncertainty, the holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.10% to 896.18 tonnes on Monday, from 895.30 tonnes on Friday.
Apart from US-China trade talks, other uncertainties like Brexit, Middle East and Hong Kong tensions is keenly watched by gold traders, said Navneet Damani, head of research for commodities and currency at Motilal Oswal Financial Services.
"Further updates on the US-Iran tensions will also be in focus, giving further direction to the precious metal pack. We continue to maintain our positive bias on gold, targeting the level ₹42,700 followed by ₹44,300 and maintain support at ₹38,600. On Comex, major resistance is at $1,630 with support the support of $1,520 followed $1,435 on Comex," he added.
Goldman Sachs has maintained its three-, six- and 12-month forecast for gold at $1,600 per ounce. The financial services major contends gold to be a better hedge than oil during phases of geopolitical uncertainty.
The US has no plans to pull its troops out of Iraq, Defense Secretary Mark Esper said on Monday. Iraq's parliament has passed a resolution calling for all foreign troops to leave the country.
Asian shares rebounded today after there was no further escalation in Middle East tensions.
On gold traders' radar will be US Vice President Mike Pence's speech next week where he is expected to laying out the government's policy on Iran. Tensions between Washington and Tehran have heightened since a US drone strike killed Iranian military commander Qassem Soleimani on Friday. (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!!