Gold Silver Pani Pani—— Sapne Dekho Gold 42000 Silver 56000 — Rona Mana HAi
Gold prices today fell for second time in three days amid muted global rates and a higher rupee against the US dollar. On MCX, gold contracts were down nearly ₹117 to ₹38,355 per 10 gram. Gold prices rose ₹155 on Monday, following a ₹263 decline on Friday. Silver also struggled today, falling 0.3% to ₹46,475 per kg. In global markets, gold prices fell for the second day today as optimism that China and US are closer to signing a trade accord.
This increased the appetite for riskier assets like equities, weighing on the prices of safe-haven gold. Spot gold was down marginally at $1,507.31 per ounce. The US dollar also rose to one-week high against a basket of other currencies, also weighing on gold. A stronger dollar makes gold expensive for buyers holding other currencies, thus weighing on the demand for the yellow metal.
Optimism on trade deal has lifted risk sentiments in markets and thus weighed on gold prices, Geojit Financial Services said in a note.
The Financial Times newspaper, citing sources, reported that the White House was considering rolling back the September 1 tariffs, which cover some clothing items, flat-screen televisions, smart speakers and Bluetooth headphones.
Overnight, the US stock markets set another record high, extending their streak of new highs.
The US Federal Reserve last month cut interest rate for the third time this year but signaled a pause. Recent data from US and China has lifted sentiment in equities. Lower interest rates help non-interest yielding assets like gold.
Geojit Financial Services expects global gold prices to remain rangebound in near term. “Hopes of an immediate trade deal and a bunch of recent positive economic releases eased apprehensions of further economic slowdown and slightly boosted the market optimism. Increased global economic confidence perhaps reduce gold’s safe haven demand,” the brokerage said.
