Gold prices in India fell lower, tracking bearish global trend on Tuesday backed by signs of easing tensions between the US and China.
On the MCX, gold contracts for February were trading Rs 218 points or 0.55% lower at Rs 39,328 per 10 gramme today. It made an intraday low of 39,262.00 and high of 39,500.00 today. Retail gold in India traded near Rs 40,000 on Tuesday.
Compared to its highest level of Rs 41,293 per 10 gramme recorded on January 8, 2020, gold prices in the domestic market has fallen over Rs 2,000 per 10 gramme in a week.
In a similar trend, silver futures on MCX today fell 0.82% to Rs 46,060 per kg.
Internationally, safe-harbour assets like gold extended Monday's fall and slid lower on Tuesday, with spot gold trading 0.6% weaker at $1,538.76 per ounce.
Traders said fall in gold prices was on the back of positive global cues. Globally investors sentiments were positive on the news that US President Donald Trump is set to sign an interim 'phase one' trade agreement with China on January 15, 2020.
Ahead of the signing of phase one deal with China, the United States removed the currency manipulator label it imposed on China last summer. This was also taken as a sign of easing tensions between the two economic powers after nearly two years of the trade conflict, commodity traders said.
This was coupled with Indian rupee climbing to its 2-month high of 70.74 per US dollar, as investment risk appetite of currency traders improved further.
Recently, the yellow metal was trading near a 7-year high, with spot gold rising 2% to $1,610 per ounce, on back of rising geopolitical tensions in the Mideast.
By Rupa Burman Roy