Gold prices on Multi Commodity Exchange of India (MCX) opened sharply lower on Tuesday, following losses in international bullion markets, on optimism over easing US-China trade tensions. MCX silver prices today also declined over a percent.
MCX gold rate opened 0.7% lower at ₹1,20,106 per 10 grams as compared to its previous close of ₹1,20,957 level. MCX silver prices opened 0.69% lower at ₹1,42,366 per kg as against its previous close of ₹1,43,367 level.
At 1:50 PM, MCX gold price traded lower by ₹2,387, or 1.97%, at ₹1,18,570 per 10 grams, while MCX silver price traded at ₹1,40,879 per kg, down by ₹2,488, or 1.74%.
Trading in MCX opened late by more than four hours on Tuesday after the commodity exchange faced a major technical glitch.
In the global markets, gold prices extended losses to a near three-week low, as optimism over a potential US-China trade deal dented demand for safe-haven bullion.
Spot gold price fell 1% to $3,941.65 per ounce, hitting its lowest level since October 10. US gold futures for December delivery lost 1.5% to $3,957.50 per ounce.
“Gold prices remained volatile due to reduced safe-haven demand after encouraging developments in US-China trade negotiations. The precious metal regained ground as investors shifted their attention to the upcoming US Federal Reserve policy decision. The Fed is widely expected to lower rates by 25 bps, following last week’s softer-than-expected inflation report,” said Jigar Trivedi, Senior Research Analyst, Reliance Securities.
Meanwhile, market participants now focus on upcoming central bank meetings, with the US Federal Reserve widely expected to deliver a 25 basis points (bps) rate cut following weak US inflation data, while both the ECB and BOJ are anticipated to maintain steady policy stances.
Gold Price Outlook
According to Jigar Trivedi, MCX gold price for December expiry may find support at ₹1,17,000 – ₹1,15,000 levels, and face resistance at ₹1,20,000 level. Support for Comex gold price is seen at $3,865 – $3,825, while resistance is placed at $3,960 – $4,000 levels.
“The outlook for gold prices remains bearish and investors can apply ‘sell on bounce’ strategy. Focus remains on the upcoming US Fed policy and the meeting between Donald Trump and Xi Jinping,” Trivedi said.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
