Gold prices in India were flat today after suffering sharp losses in the previous day. On MCX, October gold futures were trading at ₹37,619, up 0.05%, per 10 grams. Silver prices today edged lower, extending recent losses. Silver futures on MCX were down 0.15% to ₹46,717 per kg. On Wednesday, gold and silver prices on MCX fell 1.4% and 2.5%, tracking a decline in global prices. After the recent correction, gold prices in India are down about ₹2,300 per 10 gram from their highs of ₹39,885, hit earlier this month. Silver has suffered bigger losses, falling ₹4,700 per kg from recent highs.
In spot markets, prices of 24 Karat gold fell ₹497 to ₹38,685 per 10 gram Delhi, Press Trust of India reported, citing HDFC Securities. Silver also dropped by ₹1,580 to ₹47,235 per kilogram.
In global markets, gold prices added 0.4% to $1,509.46 an ounce after sliding nearly 2% on Wednesday. Silver prices in global markets edged 0.4% lower to $18.51 an ounce.
US President Donald Trump on Wednesday said that a trade deal with China could happen sooner than people think, lifting equity markets across the world. This took some shine off safe-haven assets like gold even though while concerns remained on the impeachment inquiry the US President is facing.
Analysts say that gold prices are likely to be supported on the downside by concerns over global growth concerns and expectations of further easing of monetary policy by central banks. Supporting this outlook, investment demand for gold still remained strong. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 1.81% to 924.94 tonnes on Wednesday.
Gold prices are up sharply this year on demand for safe-havens amid central bank easing, slowing growth and the US-China trade war.
The correction in gold prices comes ahead of the start of the festive season in India. Jewellers hope that the recent dip in prices will help lift consumer demand. A spike in gold prices this year has hurt gold demand in India as prices are up around 20% despite the recent dip.
The wedding season and festivals such as Diwali and Dussehra, when buying gold is considered auspicious, typically lifts gold demand in India in the October-December quarter.