Gold prices in India moved higher today, snapping a three-day losing streak. On MCX, gold futures contracts for December delivery rose 0.23 per cent to Rs 38,040 per 10 gram. Silver prices also edged higher. On MCX, prices of silver contracts rose 0.07 per cent to Rs 44,771. In global markets, gold prices were steady today as investors remained cautious about the US-China deal. Spot gold prices were flat at $1,464.36 per ounce.
Investors, however, were wary that bills passed by US lawmakers supporting the Hong Kong protesters could thwart a smooth passage of an interim trade deal. The Federal Reserve has cut interest rates thrice this year and the last statement had stated a pause in the current easing cycle. A pause in further rate cuts is negative for gold prices, says Mr Bansal. Lower interest rates reduce the opportunity cost for holding the non-yielding bullion.
The tariff war between the US and China has pushed gold, traditionally a safe asset in times of political and economic uncertainty, about 14 per cent higher this year in global markets, on track for its biggest yearly gain since 2010.
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