Gold prices in India fell for the second straight day today. On MCX, gold prices were down 0.09% to ₹38,172, extending losses to the second day. After the recent decline, gold prices are now down about ₹1,800 per 10 gram from September highs of about ₹40,000 per gram. Silver rates were also softer. On MCX, silver futures were down 0.08% to ₹44,825.
In global markets, gold prices rose 0.1% to $1,473.75 an ounce. Asian stock markets fell today after the US Senate passed legislation supporting Hong Kong protesters, potentially complicating US-China trade talks.
Abhishek Bansal, chairman of ABans group, said gold prices have been supported by uncertainty over US-China trade talks, weakness in the US dollar, and easing policy stance by major central banks.
The focus of gold traders would be shifting towards the minutes of Federal Reserve’s last policy meeting, due later today. The Federal Reserve has cut interest rates thrice this year as an insurance against the US-China trade war and to support growth. However, the last Fed statement had stated a pause in the current easing cycle.
Comex gold is holding in a tight range ahead of the US Federal Reserve policy meeting minutes, he said, while domestic gold prices are being pressured by the strength in the rupee against the dollar.
US President Donald Trump on Tuesday threatened to raise tariffs further if China would not agree to a deal that he liked.
The aggressive tone unsettled dented risk appetite and thus supported gold prices. Wall Street ended lower overnight.
The focus of gold traders remains on the US-China trade talks, and markets seem reluctant to move much in either direction, said an analyst. (With Agency Inputs)