1 min read.Updated: 12 Dec 2019, 04:31 PM IST Written By Nikhil Agarwal
Gold prices reflect overnight gains in international prices
Gold rates have been supported by the uncertainty over the US-China trade war outcome
NEW DELHI :
After rising by ₹128 yesterday to break a five-day long losing streak, gold prices rose once again for the second consecutive day today amid uncertainty over the US-China trade deal. On the Multi Commodity Exchange, gold future rates were up ₹96 to ₹37,795 per 10 gram. Silver, which has also lost some sheen this month, was also trading higher today by ₹199 to ₹44,024 per kg.
HDFC Securities Senior Analyst (Commodities) Tapan Patel said gold prices in the international market traded up ahead of the US FOMC rate decision and uncertainty over the US-China trade deal.
ABans Group of Companies chairman Abhishek Bansal attributed to the rise in gold prices to the uncertainty over the US-China trade war outcome. "If President Trump does go ahead with the planned $160 billion in tariffs on Chinese goods with less than two weeks before Christmas, it would cheer the risk-off assets like gold and silver," Bansal said.
gold prices have risen slowly and steadily over the last few trading sessions helped by uncertainty over the tariffs. Unless the US Trade Representative issues a notice of modification with regards to these tariffs, they will take effect from Sunday. Gold not only got support due to trade war uncertainty, but the weakness in the dollar index also helped gold remain resilient.
Gold is heading for the biggest annual gain since 2010 as central banks all over the world embrace looser monetary policy to try to boost growth that had been hit by the prolonged trade war. Traders were looking for cues from the US Federal Reserve policy yesterday but it remained uneventful after it was decided to keep unchanged the interest rates unchanged with no indication to raise them anytime soon.
Citigroup Inc. said that gold has got more room to rally as there’s little possibility of the Federal Reserve raising interest rates in 2020.
In the international market, gold prices were little changed. Spot gold slipped 0.1% to $1,473.23 an ounce at 0808 GMT. U.S. gold futures were up 0.2% at $1,477.50.
Investors are now waiting for developments related to the imposition of new tariffs on Chinese goods from December 15. The biggest risk to gold prices in the very short term is a surprise trade deal between the US and China and a significant rollback of tariffs.
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!!