Gold rates today moved higher in domestic markets in tandem with a similar global trend. On MCX, December gold future contracts were up 0.13% to ₹38,084 per 10 gram while silver contracts edged up by 0.44% to ₹45,427 per kg.
In global markets, spot gold rates were up 0.2% amid a mixed backdrop. Britain and the European Union are in last-ditch talks to get a Brexit deal ahead of a summit of the bloc’s leaders this week.
Stock markets have rallied on hopes of a possible deal to avoid a disorderly British exit from the European Union. On the other hand, the dearth of details about “Phase 1” trade deal between the US and China has tempered initial enthusiasm.
“Gold prices may continue to trade in a broad range of $1480-1530/ounce unless we get more clarity on US-China trade front and Fed’s monetary policy. Gold came under pressure late last week as US-China signaled progress in trade talks however skepticism seeped in amid lack of concrete deal and comments from US and Chinese officials,” Kotak Securities said in a note.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.22% on Tuesday from Monday.
Spot prices of 24 Karat gold in Delhi advanced ₹120 to ₹39,030 per 10 gram while silver also jumped by ₹489 to ₹46,809 per kilogram, Press Trust of India reported, citing HDFC Securities.
Gold prices have remained choppy since hitting a high of about ₹40,000 per 10 gram last month. Higher prices have hurt gold demand in India. Gold imports plunged 62% to $1.36 billion in September, narrowing the trade deficit to a seven-month low of $10.86 billion. Gold prices in India include 12.5% import duty and 3% GST.
The recent correction in domestic gold prices, down about ₹2,000 per 10 gram from September highs, during the festive season has spurred hopes of an uptick in retail demand. Many jewellers including Tanishq, Kalyan Jewellers and Malabar Gold & Diamonds have come up with promotional offers to attract buyers.
