Tuesday, 19 November 2019

Gold prices fall today after a sharp rise, silver rates edge lower

Gold rates have been choppy in recent days
Gold traders will be closely watching minutes of the Fed's last policy meeting, due on Wednesday

Gold prices in India fell today, after a sharp jump in the previous session. On MCX, prices of gold futures contracts were down 0.11% to ₹38,187. In the previous session, gold prices had jumped ₹0.65%, after swinging about ₹500 from day's lows. Silver prices were also weak today and were down 0.07% to ₹ ₹44,654 a kg on MCX. In global markets, gold prices rose to nearly two-week high today amid uncertainty about a trade deal between the US and China.

This dented appetite for riskier assets, thus boosting the appeal of gold. Spot gold rose 0.2% to $1,473.04 per ounce, the highest since November 7. Silver prices also gained 0.2% to $17.05 an ounce.

News reports, citing sources, on Monday reported that China was pessimistic about a trade deal with the US amid disagreement over rollback of tariffs.

Gold prices have remained choppy over the recent weeks, swinging to hint of progress or tension.

Asian equity markets were mixed today as investor sentiment remained cautious amid worries about the next development in trade talks.

Many investors remained on the sidelines. The holding of SPDR Gold Trust, the world's largest gold-backed ETF, fell 0.56% to 891.79 tonnes on Monday from 896.77 tonnes on Friday.

The dollar held close to a two-week low, with demand hurt by receding hopes for a preliminary trade truce.

Federal Reserve Chairman Jerome Powell met US President Donald Trump and Treasury Secretary Steven Mnuchin on Monday to discuss the economy.

Trump later tweeted that they’d had a “very good and cordial meeting" and had discussed a range of issues including “interest rates, negative interest, low inflation, easing, Dollar strength and its effect on manufacturing, trade with China, EU and others, etc." The meeting comes amid a steady stream of criticism of the Fed by Trump over its monetary policy.

Gold traders will be closely watching minutes of the Fed's last policy meeting, due on Wednesday. Though the Fed cut interest rates for the third this year in its last meeting, it signaled a pause in future rate cuts.

Abhishek Bansal, chairman of ABans Group, said the weakness in the US dollar and a cut in interest rates by China could lend some support to gold prices.

China's central bank on Monday cut the seven-day reverse repurchase rate to 2.5% from 2.55% for the first time since October 2015.

The gold market's next focus would be shifting towards the minutes of Fed's last policy meeting, he added.

Back in India, high gold prices, up over 20% so far this year, has hurt demand. According to a report from Edelweiss Securities, gold imports fell to $17.6 billion in April-October, as compared to $19.4 billion during the same period of the previous year. (With Agency Inputs)


gold &silver live price today

Gold Open Price            High Price Today             Low Price Today           current Price Today
38230                                38230                               38150                               38155


Silver Open Price           High Price Today            Low Price Today            current Price Today
44545                                   44690                            44545                              44611

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