Gold prices in India today marginally inched higher after recent declines. On MCX, gold futures prices traded 0.13% higher at 37,964 per 10 gram. Silver prices on MCX rose 0.36% today to 46,155 per kg. After the recent decline, gold prices are lower by about 2,000 per 10 gram from its September highs of about 40,000 per 10 gram. Silver has also corrected from the level of about 51,500.

In spot markets, prices of 24 Karat gold in Delhi today rose 87 to 38,842 per 10 grams while silver gained 450 to 47,220 per kg, Press Trust of India reported, citing HDFC Securities.

In global markets, gold prices were steady at $1,488.23 per ounce ahead of monetary policy announcement by US Federal Reserve later in the day.

Analysts expect the US central bank to cut interest rates by 25 basis points for the third time this year later in the day.

Meanwhile, there are some doubts whether US and China will be able to complete an interim trade agreement for signing next month, as expected earlier. The agreement may not be completed in time for signing in Chile next month as expected but that does not mean the accord is falling apart, Reuters reported citing an US administration official.

Gold prices in global markets are up 16% so far this year, supported by safe-haven demand. The precious metal is seen as a safe investment times of political and financial uncertainty.

"Gold price has come under pressure after failing to break past the $1520 per ounce level last week. Price continues to be in the broad $1480-1520/ounce range as more clarity is awaited on trade front, Brexit and Fed’s monetary policy," Kotak Securities said in a note.

"The Fed is largely expected to cut interest rate for the third consecutive time owing to challenges to US and global economy. However, Fed’s hesitance on starting a monetary easing cycle has caused some uncertainty. Fed is most likely to maintain an open ended stance however market players are worried that the central bank may indicate a halt after this week’s rate cut and this has kept gold under pressure," the brokerage said.

Weakness in gold on back of improved risk sentiment has brought a halt to silver’s recent rise, Kotak Securities said.

Many investors have moved to the sidelines awaiting clarity on US-China trade deal and US Fed stance. The holding of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.13% to 917.31 tonnes on Tuesday from 918.48 tonnes on Monday.

News agency IANS today citing sources said that the Indian government may soon announce an amnesty scheme for gold to bring hordes of black money used in buying the yellow metal considered a safe investment option in India.

(With Agency Inputs)

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