Gold prices in India have opened on a weak note today too, tracking a similar global move. According to the MCX site, prices of December futures gold contracts were down about Rs. 50 to Rs. 37,845 per 10 gram. This was the fifth day of decline in gold prices, down from about Rs. 400 per 10 gram during the period. Silver prices too opened lower today. On MCX, silver prices fell 0.40% to Rs. 44,308 per kg. In global markets, gold prices slipped to one-week low today amid some positive developments about an interim trade agreement between the US and China.
This news has lifted the risk appetite of investors, pushing Asian equities higher. Spot gold prices fell 0.1% to $1,461.02 per ounce while silver shed 0.3% to $16.95 per ounce.
Over the weekend, US national security adviser Robert O Brien said that a phase 1 trade agreement with China is still possible by the end of the year but the Trump administration would not turn a blind eye to what happens in Hong Kong.
Retail demand of gold remained weak in India last week despite the price drop over past two months. Analysts attribute the surge in prices this year from about Rs 31K to Rs 39K for weak demand. So far this year gold prices have risen by about 20% in India.
Dealers in India were offering a discount of up to $3 an ounce over official domestic gold prices last week, compared to a premium of $1.5 an ounce the previous week, Reuters reported. The domestic price of the precious metal includes a 12.5% import tax and 3% GST. India's gold imports in October fell a third from a year earlier, dropping for a fourth straight month.
Gold traders will be closely following Fed Chair Jerome Powell speech scheduled later in the day. Lower interest rates help boost the appeal of non-interest yielding asset classes like gold.
