Gold prices surge today, silver rates rise about ₹5002 min read . Updated: 31 Oct 2019, 04:58 PM IST
- Gold rates in India mirrored a similar global trend
- In recent weeks, gold prices have remained in a range
Gold and silver prices in India surged today, tracking a firm global trend. On MCX, prices of gold futures contracts surged 0.61% to ₹38,320 per 10 gram. Tracking gold, silver rates also surged over 1% to ₹46,021 per kg, up nearly ₹500. In spot markets, gold prices were also firm. Prices of 24 carat gold were up ₹115 to ₹39,017 per 10 gram in Delhi while silver prices increased ₹95 to ₹47,490 per kg, Press Trust of India, reported citing HDFC Securities.
In global markets, gold prices moved higher today after the US Federal Reserve, as expected, lowered interest rates for the third time this year.
But the US central bank signalled a pause in rate cuts unless the economy takes a turn for the worse. It dropped a previous reference in its statement that signalled future rate cuts. This capped the rise in gold prices. Spot gold prices rose 0.7% to $1,507 per ounce. Lower interest rates boost the appeal of non-yielding asset classes like gold.
Gold faces resistance in the $1500-1525 zone while an unexpected drop below $1472 would negate any bullish expectations, Geojit Financial Services said in a note.
Gold prices also got a boost from a weaker dollar. The dollar index against a basket of six major currencies dipped today. A lower US currency makes dollar denominated metals cheaper for holders of other currencies, which could help boost their demand.
Risk sentiment has improved after the US and China reached a trade truce and all eyes are on how soon the world's two largest economies can sign an interim trade deal.
Leaders from the United States and China encountered a new obstacle in their struggle to end a damaging trade war on Wednesday, when the summit where they were supposed to meet was cancelled because of violent protests.
US President Donald Trump said this week he hoped to sign an interim trade deal with Chinese counterpart Xi Jinping during the November 16-17 Asia-Pacific Economic Cooperation summit in Chile. Chile has cancelled the summit to focus on restoring law and order in the country. While the White House still expects to sign an initial trade agreement with China next month, no alternate location has yet been set for Xi and Trump to meet.
The 15-month-old trade spat between US and China, worries about global slowdown and central bank buying has lifted global gold prices up around 17% this year.
In India, gold prices have risen higher due to the hike in import duty and rupee depreciation.
Data from China suggested that gold consumption in the country, the world's top consumer of the precious metal, fell 9.58% year-on-year to 768.31 tonnes in the first nine months of 2019. (With Agency Inputs)