Gold Prices Lower On Renewed Hopes Of US-China Trade Talks

Gold prices in India eased on Friday in the futures market. On MCX, gold futures (October) fell by 0.20 percent to Rs 38,734 per 10 grams. It was trading between an intraday low and high of Rs 38,650 and Rs 38,820. Silver futures were trading higher by 0.61 percent at Rs 46,595 per kg. However, the two precious metals were holding much lower than their recently attained all-time highs. Earlier this week, futures of gold and silver had seen new highs of Rs 39,425 (per 10 grams) and Rs 47,440 (per kg), respectively.

The prices in India lowered on Friday, mirroring the global market scene where spot gold fell 0.2 percent to $1,525.06 an ounce. Spot gold is set to end the month with a 7.9 percent rise, but maybe heading for a mild weekly loss of 0.1 percent, after four straight weeks of gains.

The Chinese commerce ministry, on Thursday, said that its officials will meet with the US for their next round of face-to-face talks scheduled for September but also added that it was important that the Trump administration cancels the recent tariff increase.

American president Donald Trump also gave positive indications when he said on Thursday that discussions took place between the countries, which comes ahead of the deadline of 1 September for impositions of its new round of tariffs on some Chinese imports.

Traders reduced their bets on gold as markets positively reacted to a possible softening of tensions between the two largest economies in the world.

In August, gold and silver prices touched new highs as traders' focus remained on the developments in the US-China trade spat. The movement in the precious metals is likely to remain dependent on the sentiments around the trade dispute in the near future.