Gold prices in India edged lower on Wednesday, falling for the seventh consecutive session in a row, tracking international global rates.
On MCX, gold futures contracts were trading 0.20% or Rs 95 lower at Rs 37,647 per 10 gramme on Wednesday. Gold prices have fallen around Rs 2,350 per 10 gramme from earlier highs of Rs 40,000 recorded in September 2019.
Analysts said appreciation in rupee coupled with positive optimism on US-China trade deal has kept MCX gold prices under pressure.
Similarly, silver contracts on MCX were down 0.40% at Rs 44,262 per kg.
"Gold prices declined as the dollar firmed and equities rose on increasing optimism that China and the United States could seal an interim trade deal by year-end," quoted Jateen Trivedi, Senior Research Analyst at LKP Securities.
In the meanwhile, the rupee traded strong today, rising 14 paise higher to 71.38 against the dollar, compared to its previous close of 71.50 per US dollar. Experts said unabated foreign fund inflows in domestic equity and debt market coupled with strength in Asian currencies helped rupee gain momentum.
In global markets, spot gold prices pared previous gains and declined 0.1% to $1,459.91 per ounce, compared to 1,471 per ounce recorded seven days ago, on November 19.
On Tuesday, US President Donald Trump said that Washington was close to signing an interim trade deal with China. This reduced gold's safe-haven demand and pushed international prices down. Recently, US-China trade deal uncertainties have driven gold's short term momentum.
By Rupa Burman RoyGold prices fall to Rs 38,604 on reports of US-China trade deal optimism