Gold and silver prices in India today fell sharply, tracking a weak global trend. On MCX, October gold futures slipped 0.70% to ₹37465 per 10 grams. Silver prices on MCX fell 1.48% to ₹44,842 per kg, extending their recent decline. Gold prices in India are down about ₹2,400 per 10 gram from their record highs of ₹39,885, tracking a decline in global prices. "Bear dominance will intensify if gold prices move below ₹37,300, dragging the precious metal lower to next support of ₹37,000. Short to medium term trend looks weak," Yes Securities said in a note.
Silver has suffered bigger losses from its highs of ₹51,489, also hit earlier this month. They are now down about ₹6,600 per kg from highs.
Gold prices continued their decline in global markets after a sharp fall in the previous week. Spot gold prices were down 0.2% at $1,494.30 per ounce. An easing of concerns of an escalation in the US-China trade war took some shine off the safe-haven appeal of gold. China and US will resolve their trade dispute "with a calm and rational attitude", China's Vice Commerce Minister Wang Shouwen said on Sunday, ahead of talks in two weeks between the two sides.
Also easing tensions, Bloomberg, citing sources, reported that the US does not currently plan to stop Chinese companies from listing on US exchanges.
Investors also took some profit off the table. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.22% to 922.88 tonnes on Friday.
Analysts say that gold could get support on the downside from worries about global growth, uncertainty about US-China trade deal and expectations of further easing of monetary policy by central banks.
The recent correction in prices and the start of the festive season is expected to lift retail demand in India. Gold dealers have reported rising orders from jewellers across the country. The discounts offered by dealers to official domestic prices have also narrowed sharply. Gold prices in India include a 12.5% import tax and 3% GST.