Gold prices in India slipped today, tracking muted global rates. On MCX, February gold futures prices slipped 0.08% to 39,915 per 10 gram, the first decline in three sessions. Silver futures on MCX also declined 0.11% to ₹46,706 per kg. "Gold may witness sideways movement. Gold can recover towards ₹40,100 while taking support near ₹39,600 while silver can test ₹47,000 while taking support near 46,500," SMC Global said in a note.
In global markets, gold rates remained rangebound as strong US economic data increased investors' appetite for riskier assets. Spot gold prices edged 0.1% higher to $1,558.47 per ounce. Data released on Friday showed US homebuilding surged to a 13-year high last month while factory production increased for a second straight month. This dented the safe-haven appeal of gold. Silver edged higher by 0.2% to $18.03 per ounce
Investment demand for gold showed a mixed picture. Speculators cut their bullish positions in COMEX gold contracts in the week to January 14 while holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 2.20% to 898.82 tonnes.
"Improved global economic optimism after the phase-one trade deal lifted the demand for riskier assets which may pressure the sentiments of gold. On the technical side, as long as $1565 caps the upside expect corrective selling pressure for the day. However, a direct drop below $1535 is required to trigger major liquidation," said Hareesh V, head of commodity research at Geojit Financial Services.
Demand for gold however remained muted in India, the world's second largest gold consumer, even though prices have come off from their record highs of ₹41,300 per 10 gram, hit earlier this month. Domestic price includes a 12.5% import tax and 3% GST.
Dealers in India were offering a discount of up to $11 an ounce over official domestic prices last week, compared with a discount of $7 in the previous week, Reuters reported.
Jewellers however expect demand to pick up. Weddings are one of the biggest drivers of gold purchases in India. (With Agency Inputs)
2020-01-20 05:01:38Z
https://www.livemint.com/market/commodities/gold-price-fall-today-after-three-days-silver-rates-slide-11579491029021.html
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