On MCX, February futures were down 0.52 per cent or Rs 207 to Rs 39,312 per 10 gram, tracking a decline in global rates. Silver prices, too, on MCX fell over 1 per cent or Rs 533 to Rs 45,964 per kg ahead of Wednesday’s signing of a Phase I trade agreement between the United States and China.
- By Surbhi Jain
Gold and silver prices continued to slide in India, as investors shunned safe assets for riskier ones with the US-China trade deal seemingly nearing. On MCX, February futures were down 0.52 per cent or Rs 207 to Rs 39,312 per 10 gram, tracking a decline in global rates. Silver prices, too, on MCX fell over 1 per cent or Rs 533 to Rs 45,964 per kg ahead of Wednesday’s signing of a Phase I trade agreement between the United States and China. “Since the trade deal date is nearing investors are moving away from precious metals to riskier assets,” Navneet Damani, Vice President – Research, Motilal Oswal Financial Services Ltd, said.
The domestic equity benchmarks Sensex and Nifty had hit their all-time high in morning trade on Tuesday. At noon. S&P BSE Sensex was trading flat at 41,860.50 levels, while NSE NIfty 50 was ruling 7.6 per cent or 0.06 per cent higher at 12,337-levels. In the global market, gold was trading at 1,539.61 dollar per ounce. Brent Crude was steady around 64.37 dollar per barrel. Apart from the trade deal, investors are also anticipating US inflation data due later on Tuesday and the beginning of the fourth-quarter US company results season.
What hit gold prices?
“Gold prices in the last couple of sessions witnessed some correction and retraced from its highest level in seven years on COMEX following de-escalation of tension in the Middle East and tracking optimism over US-China trade deal that will be inked this week. At the start of the year, bullion prices got support from a sudden rise in geopolitical tension between the US and Iran, although President Trump put cold water calming the markets and subsidizing the overall uncertainty,” Navneet Damani said.
Where are gold prices headed?
“The broader trend on Comex for Gold could be $1,520-1,570 and on the domestic front, prices could hover in the range of Rs 38,800-40,050 same way trend for Silver on COMEX could be $17.20-18.15 and on domestic front prices could hover in the range of Rs 44,900-47,700,” according to Navneet Damani.
What to watch out for: “The Phase one trade deal will be inked on 15 January 2020, taking the first step towards ending the 18-month long trade dispute between the world’s two largest economies. All the updates, before and after signing the phase one deal, coming from US and China will be very important to gauge the direction of the market,” he said.