Gold prices today fall for 3rd day, down ₹1,600 per 10 gram from recent highs1 min read . Updated: 10 Jan 2020, 09:39 AM IST
- Gold prices have fallen sharply as tensions between US and Iran eased
- Silver rates have also seen a big decline
Gold and silver prices India today extended their recent losses, tracking decline in global rates. On MCX, February gold futures prices fell 0.38% to ₹39,680 per 10 gram, declining for the third day in a row. Gold prices in India had surged to a record high of ₹41,293 per 10 gram earlier this week. Silver futures on MCX also today fell 0.34% to ₹46,419. In global markets, gold prices declined today as apparent easing in US-Iran tensions boosted investors' appetite for riskier assets.
Gold rates fell to $1,551, after a steep decline in the previous session. Reflecting the investor sentiment, the holdings SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.5% to 882.12 tonnes on Thursday. Among other precious metals, silver was flat at $17.89 per ounce.
Globally, equities have rallied after US President Donald Trump responded to Iran's missile attacks with sanctions instead of military action. Also, the US House of Representatives passed a resolution on Thursday to stop Trump from further military action against Iran.
Gold traders are now looking to the US jobs figures, due later today, for a better idea about the state of the world's top economy.
Next on gold traders' radar: 'Phase 1' trade deal signing between Washington and Beijing, scheduled next week.
Weighing on gold price is expectations of upbeat job numbers and optimism about signing of phase 1 of US-China trade on January 15, Kotak Securities said in a note.
US Fed last month left interest rates unchanged and also signaled policy would be on hold through 2020. Many analysts don't expect a rate cut from the US Fed in near term.
Analysts say gold prices on the downside will be supported by global growth concerns and Fed’s stance to keep interest rate steady throughout 2020. "Geopolitical tensions are unlikely to subside so soon however lack of any fresh measures has helped eased market nerves to some extent," Kotak Securities added. "Any statement coming from US or Iran will be closely watched and will affect the general risk sentiment."
Silver, Kotak Securities added, may witness choppy trade as improved risk sentiment may pressure gold but lend support to industrial metals. However, the general bias may be on the downside, the brokerage said. (With Agency Inputs)