Gold prices in India rebounded today after falling for three days in a row. On MCX, gold futures prices rose 0.42% to ₹38,040 per 10 gram. Silver futures on MCX rose 0.46% to ₹45,382 per kg. In global markets, gold prices remained muted with spot gold up 0.1% at $1,489.07 per ounce. Silver rates fell 0.2% at $17.49 an ounce. Analysts say that the uncertainty on the Brexit front is getting balanced with some progress reported in trade talks between US and China.
In domestic spot markets, prices of gold of 24 Karat in Delhi rose ₹177 to ₹38,932 per 10 gram, while silver gained ₹290 to ₹46,560 per kg, Press Trust of India reported, citing HDFC Securities.
The safe haven appeal of gold gets a boost in times of economic uncertainty. Expectations of a rate cut later this month by the US Federal Reserve also supported gold prices on the downside, say analysts.
Mixed economic data and global economic uncertainty has kept hopes high that another rate cut may happen at US Fed’s next week’s meeting, said Kotak Securities in a note.
“Amid other factors, gold remains supported by global growth worries amid mixed economic data from major economies, tensions between US and China over Hong Kong protests and tensions in Middle-east amid protests in Iraq and Turkey-Syria tensions,” it added.
Analysts expect gold to remain choppy as market players react to developments relating to trade talks, Brexit and other geopolitical issues. Some investors have moved to the sidelines awaiting further cues.
Internationally, gold has recently stayed in a tight $1,475-$1,500 range as investors await greater clarity on both Brexit and the US-China trade talks, says Jateen Trivedi, senior research analyst (Commodity & Currency) at LKP Securities.
The holding of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.5% to 919.66 tonnes on Tuesday from 924.64 tonnes on Monday.
British Parliament on Tuesday voted 322 to 308 against Prime Minister Boris Johnson’s proposed fast-track timetable for the Withdrawal Agreement Bill.
Gold prices in India have surged 20% this year but have corrected nearly ₹2,000 per 10 gram from highs of about ₹40,000 hit last month. Jateen Trivedi of LKP Securities expects domestic prices to keep floating near ₹38,000 in the near term. “We believe that this correction gives good opportunity to enter as overall prices look bullish after Diwali for potential upside towards 39000 in near term,” he adds.