Gold and silver prices in India fell, even as globally they edged higher, as safe-haven demand for the precious metals dipped due to progress on a US-China trade deal and the likelihood of an end to US government shutdown in the coming days. A Fed rate cut seems priced in.
MCX gold rate in India fell as much as 2.07% to ₹1,20,890 per 10 gm even as MCX silver rate in India decreased 2.84% to ₹1,43,275 per kg. Globally, spot gold prices reclaimed the $4,000 mark.
“While gold continues to make lower lows and futures volumes remain elevated on down days, calling the bottom is a tough ask,” Chris Weston, head of research at Pepperstone Group Ltd., said in a note. “For now, it makes more sense to let others do the hard work and tactically buy a rip after the dip.”
Gold has pulled back decisively from a record above $4,380 an ounce last Monday following a blistering rally. It’s still up more than 50% this year, with central-bank buying and the debasement trade—in which investors avoid sovereign debt and currencies to protect themselves from runaway budget deficits—providing support and attracting retail investors.