Gold prices were muted today in Indian markets, tracking a sideways movement in global markets. On MCX, gold futures prices were up 0.06% to ₹39,635 per 10 gram. Silver futures rates on MCX weakened 0.2% to ₹46,290 per kg. Gold had surged to a record high of about ₹41,300 last week amid Iran-US tensions. It is now down about ₹1,600 per 10 gram in seven trading days. But as the Middle East tensions faded, gold rates slipped from their highs.
In global markets, gold prices were steady as investors remained concerned about existing tariffs and unresolved issues even after US and China signed a partial trade deal. Spot gold rates edged 0.1% higher to $1,556.69 per ounce. * Silver rates were also flat at $17.99 per ounce.
Gold prices may remain sideways in the near term as investors remained concerned about existing tariffs and unresolved issues after Washington and Beijing signed a partial trade deal, SMC Global said in a note.
Gold can dip lower towards 39500 while taking resistance near 39700 while silver can test 46000 while taking resistance near 46,500, it added.
Defusing an 18-month row between the world's two largest economies, US President Donald Trump and Chinese Vice Premier Liu He signed a deal on Wednesday. But analysts said that the deal interim deal does not address some of the structural economic issues that led to the trade conflict and does not fully eliminate the tariffs. Gold prices had surged 18% in 2019 amid concerns about the trade war and its impact on the global economy. Asian stock markets were mixed today.
Michael Taylor, managing director for credit strategy at Moody’s Investors Service, said: "The Phase 1 trade deal between China and the US that was signed on 15 January reduces the downside risks of renewed escalation in the dispute that has weighed on the global economy for almost the past two years. The agreement could help boost bilateral exports by the two economies and lead to an improvement in business confidence as well as investment."
"But the details of the agreement suggest that there remains considerable scope for friction between the two sides, and Moody’s continues to expect tensions between China and the US to wax and wane in the years ahead," he added.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.43% to 878.32 tonnes on Wednesday.
Back in India, gold prices had surged 25% last year on the back of global rally, rupee's depreciation against the US dollar and an hike in import duty. Gold price in India includes 12.5% import duty and 3% GST. The commerce department has sought a reduction in import duty in its budget proposals to the finance department, Press Trust of India reported, citing sources.
2020-01-16 04:35:21Z
https://www.livemint.com/market/commodities/gold-prices-today-remain-weak-down-rs-1-600-per-10-gram-in-7-days-11579144981349.html
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