On MCX, Gold February futures were trading 0.59 per cent or Rs 233 higher to Rs 39,680 per gram, while Silver futures also rose 0.80 per cent or Rs 369 to Rs 46,272 on MCX as investors are keenly waiting for the details of the Phase 1 trade deal between US and China.
After the two-day losing streak, gold and silver prices surged on Wednesday in Indian markets on reports that despite the signing of an interim trade deal between US and China, tariffs on Chinese goods would remain in place until Phase 2 deal is completed. “Gold prices rose earlier today after a top US official said tariffs on China would stay until Phase 2 deal is completed, ahead of the signing of an interim trade deal between the two countries,” Jigar Trivedi, Research analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers said. On MCX, Gold February futures were trading 0.59 per cent or Rs 233 higher to Rs 39,680 per gram, while Silver futures also rose 0.80 per cent or Rs 369 to Rs 46,272 on MCX as investors are keenly waiting for the details of the Phase 1 trade deal between US and China. In the global market, gold was trading at 1.553.18 dollar per ounce.
“China has pledged to buy almost 80 billion dollar of additional manufactured goods from the United States over the next two years as part of a tariff war truce, though some US trade experts call it an unrealistic target. Moreover, recently the yellow metal has fallen by nearly 5 per cent from 2020 highs, hence we don’t deny the possibility of technical rebound also. For intraday, we expect Rs 39740- 39,800 is immediate resistance and Rs 39,600 is support, ” Jigar Trivedi, said.
The domestic equity benchmarks Sensex and Nifty are trading lower on Wednesday amid weakness in the Asian markets. S&P BSE Sensex was trading 216 points or 0.52 per cent lower at 41,860.50 points, while NSE Nifty 50 was ruling 62.60 points or 0.51 per cent lower at 12,299.70 points.
According to a Reuters report, gold has risen 18 per cent last year mainly because of the 18-month long tariff dispute and its impact on the global economy. US Treasury Secretary Steven Mnuchin said the United States would keep in place tariffs on Chinese goods until the completion of a Phase 2 trade deal. Mnuchin also said the first phase of a trade agreement will be fully enforceable, including a pledge by China to refrain from manipulating its currency.