Gold prices rise today but down ₹2,000 per 10 gram from this year's highs2 min read . Updated: 23 Dec 2019, 01:02 PM IST
- Gold rates have remained choppy in recent days
- In early September, gold prices had hit record levels of about ₹40,000 per 10 gram
Gold and silver prices in India today edged higher today, tracking some firmness in global rates. On MCX, February gold futures prices were up 0.26% to ₹38,088 per 10 gram. Silver futures were 0.42% higher at ₹45,094 per kg. Gold prices have remained choppy in recent days in global markets, ticking between gains and losses. Increased risk appetite due on optimism that China and US would soon sign a trade agreement has put a cap on gold prices. However, market players are waiting for further cues, says Geojit Financial Services said in a note. On Saturday, US President Donald Trump said the US and China would very soon sign their initial trade pact.
In terms of technicals, in Indian market, prices needs to clear the immediate upside obstacle of ₹38140-38200 levels to continue upside, says Hareesh V, Head Commodity Research at Geojit Financial Services.
In India, gold prices are headed for a strong gain this year, tracking an increase in global rates and hike in import duty. Gold remains up about 20% so far this year but still is down about ₹2,000 per 10 gram from September highs of about ₹40,000 per 10 gram.
In another development, Iran, Malaysia, Turkey and Qatar are considering trading among themselves in gold and through a barter system as a hedge against any future economic sanctions on them, Malaysian Prime Minister Mahathir Mohamad said on Saturday.
In global markets, gold prices were steady today in global markets as investors remained cautious amid thin trading, awaiting fresh developments on the China-US trade front. Spot gold prices were up 0.1% at $1,479.05 per ounce.
Meanwhile, US GDP growth edged up in the third quarter, supporting the Federal Reserve's desire to keep interest rates unchanged.
Separately, China, the world's top consumer, launched its first gold options contract on the Shanghai Futures Exchange on Friday.
Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust , rose 0.3% to 885.93 tonnes on Friday.
Meanwhile, gold demand remained subdued in India, with dealers offering a discount of up to $2.50 an ounce over official domestic prices this week in India, compared to $2 an ounce last week. Gold prices in India include a 12.5% import duty and 3% GST.
The government has sought suggestions from the jewellery industry to improve the Gold Monetisation Scheme, which was launched in 2015 to unlock the large pool of the yellow metal lying idle with households and institutions. Under the scheme, banks' customers are allowed to deposit their idle gold for a fixed period in return for interest in the range of 2.25-2.50%. (With Agency Inputs)