Gold prices in India remained flat today after a sharp loss in the previous days. Gold on MCX was trading at 37,619, 0.05%, per 10 grams. Silver prices declined today against the recent losses. Silver futures on MCX were down 0.15% at 46,717 per kg. Gold and silver prices fell 1.4% and 2.5% on MCX on Wednesday, leading to a drop in global prices. After the recent correction, gold prices in India have fallen from a high of ₹ 39,885 earlier this month to 2,300 per 10 grams. Silver has suffered major losses from the recent high of 4,700 per kg.
On Wednesday, gold prices rose 0.4% to $ 1,509.46 an ounce in global markets, which slipped nearly 2%. In the global markets, silver fell 0.4% to $ 18.51 an ounce.US President Donald Trump said on Wednesday that a trade deal with China could be hastened, which could lift equity markets worldwide.
Analysts said the fall in gold prices could be supported by global growth concerns and expectations of further easing of monetary policy by central banks. Supporting this view, investment demand for gold still remains strong. The SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holding rose 1.81% to 924.94 tonnes on Wednesday.
Gold prices are on the rise this year on the relaxation of the central bank, slowing growth and demand for safe spaces amid the US-China trade war.
The improvement in gold prices comes before the start of the festive season in India. Jewelers hope the recent drop in prices will help lift consumer demand. The rise in gold prices this year has hurt gold demand in India as prices hover around 20% despite the recent dip.
Wedding season and festivals such as Diwali and Dussehra, when buying gold is considered auspicious, demand for gold in India generally increases in the October – December quarter.