Gold prices continue to rise, silver edges higher1 min read . Updated: 07 Oct 2019, 09:39 AM IST
- Gold rates in India got support from higher global prices and a weaker rupee
- Gold traders will be watching the progress in US-China trade talks
Gold prices in India rose higher today, tracking a similar global trend. Gold futures on MCX rose 0.3% to ₹38,439 per 10 grams, also supported by a weaker rupee. A rebound in global rates helped domestic gold prices to recover from last week lows of ₹36,771, the lowest since August 13. Silver also followed a similar trend in domestic markets. On MCX, silver futures rose 0.26% to ₹45,499 per kg. In global markets, gold prices edged 0.3% higher to to $1,508.23 per ounce.
Uncertainty over a breakthrough in trade talks between US and China lent some support to gold prices. The next round of US-China trade negotiations is likely to be held later this week.
Gold traders will be focusing on whether the world's two biggest economies can end their year-long trade spat that has raised concerns of a possible recession.
Turmoil in Washington also supported gold prices, with a second whistleblower coming forward with knowledge of Trump's attempts to get the Ukrainian president to investigate a political rival.
However, gains in gold prices were capped after traders pared bets that the Federal Reserve will cut rates at both of its two upcoming meetings in the wake of Friday's unemployment data.
Gold prices have also been buoyed by buying from global central banks. Bloomberg reported that China has added more than 100 tons of gold to its reserves since it resumed buying in December. In global markets, gold prices had hit highest in more than six years, above $1,550 an ounce, last month as worries over global growth, trade war and rate cuts spurred investor demand.
Back in India, the recent drop in prices from highs of ₹40,000 per 10 gram has fuelled some uptick in physical gold demand in India. Jewellers hope that demand would increase this quarter due to Dussehra and Diwali, when buying gold is considered auspicious.
Gold imports into India plunged nearly 70% in September as record high domestic prices dampened retail buying last month, Reuters reported, citing a government source.
Meanwhile, Sovereign Gold Bond Scheme 2019-20 - Series V opens for subscription today, at a issue price of ₹3,788 per gram. Investors applying online and making payment for the purchase of the bond through digital mode will get a discount of ₹50 per 10 gram. (With Agency Inputs)