Gold prices in India rose for the second consecutive day on Wednesday on MCX. Gold futures (December 2019) were trading at Rs 38,472 per 10 grams of 22 carats, up by Rs 89 or 0.23 percent from the previous close.

Silver rates were also seeing a similar trend. On MCX, silver futures were up by 0.77 percent or Rs 355 to Rs 46,229/kilo.

Global market

In the international markets, spot gold remained almost unchanged at $1,505.46 per ounce, but stood its ground above $1,500 after jumping as much as 1 percent in the previous session.

The yellow metal remains strong in the global markets as investors await decisions on the US-China trade negotiations that are scheduled to be held on Thursday and Friday.

The relations between the two largest economies in the world remain fragile after the US imposed visa restrictions, on Tuesday, on Chinese officials for the detention or abuse of Muslim minorities. The move threatens to derail the already not-so-promising trade talks.

Gold demand in India

In India, jewellers worry that a rise in gold prices will hurt their sales in the festive season.

Surendra Mehta, National Secretary, India Bullion and Jewellers Association (IBJA) told news agency IANS on Tuesday that while gold sales on Dhanteras generally touches 40 tonnes every year, sales may fall by as much as 50 percent this year due to weak demand for the metal.

He also said that gold imports have sunk due to higher prices and an increase in import duty. In the month of September, India imported only 26 tonnes of gold, which is 68.18 percent lower than 81.71 tonnes imported a year ago.

In the Union Budget this July, the Central Government increased import duty on precious metals from 10 percent to 12.5 percent.