In line with the global price scenario, gold in the domestic markets have rolled back the previous gains and is down Rs. 1000 from its previous highs scaled on MCX of Rs. 39,885 per 10gm, reached earlier during the week. On the MCX, gold was last trading down by 0.95% or Rs. 368 at Rs. 38,526 while silver had been down by Rs. 1271 or 2.57% at Rs. 48187. On September 4, silver scaled Rs. 2500 to hit a recent high of Rs. 51,489 per kg.
Gold has been hit by the pull gain in rupee which earlier during the week on poor GDP numbers hit a 1-year low and also as global tensions ebbed. The sentiment improved risk taking capacity, fading sheen of safe haven assets.
Nonetheless, the declines in gold remain capped as the central banks world over are likely to resort to interest rate cut to strengthen their respective economies. And in such situations non-yielding instruments such as gold still remain attractive.
Globally, the gold price has faced pressure as the US economic data has came in better than expected and as there is expected thaw in the ongoing US-China trade spat. Global gold prices have yet again receded extending Thursday's losses to $1,516.02.