Gold and silver prices in India today edged higher on Monday, tracking some firmness in global rates. On MCX, February gold futures prices were up 0.26 percent to ₹38,088 per 10 gram.
Silver futures were 0.42 percent higher at ₹45,094 per kg.Gold prices have remained choppy in recent days in global markets, ticking between gains and losses.
Increased risk appetite due on optimism that China and US would soon sign a trade agreement has put a cap on gold prices. However, market players are waiting for further cues, says Geojit Financial Services said in a note.
On Saturday, U.S. President Donald Trump said the US and China would very soon sign their initial trade pact.
In India, gold prices are headed for a strong gain this year, tracking an increase in global rates and hike in import duty. Gold remains up about 20 percent so far this year but still is down about ₹2,000 per 10 gram from September highs of about ₹40,000 per 10 gram.
In another development, Iran, Malaysia, Turkey and Qatar are considering trading among themselves in gold and through a barter system as a hedge against any future economic sanctions on them, Malaysian Prime Minister Mahathir Mohamad said on Saturday.
In global markets, gold prices were steady today in global markets as investors remained cautious amid thin trading, awaiting fresh developments on the China-US trade front. Spot gold prices were up 0.1 percent at $1,479.05 per ounce.
Meanwhile, US GDP growth edged up in the third quarter, supporting the Federal Reserve’s desire to keep interest rates unchanged.
Separately, China, the world’s top consumer, launched its first gold options contract on the Shanghai Futures Exchange on Friday.
Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust , rose 0.3 percent to 885.93 tonnes on Friday.
Meanwhile, gold demand remained subdued in India, with dealers offering a discount of up to $2.50 an ounce over official domestic prices this week in India, compared to $2 an ounce last week. Gold prices in India include a 12.5 percent import duty and 3 percent GST.
The government has sought suggestions from the jewellery industry to improve the Gold Monetisation Scheme, which was launched in 2015 to unlock the large pool of the yellow metal lying idle with households and institutions.
Under the scheme, banks’ customers are allowed to deposit their idle gold for a fixed period in return for interest in the range of 2.25-2.50 percent.
Source: Livemint
