In India, gold fell in price for the second consecutive day as gains in the rupee limited any upward movement in the yellow metal. The metal on the MCX fell by 0.23% to ₹38,072 per 10 gram. Since its previous months' record high levels of Rs. 40,000 per 10gm, the precious metal has retreated in price by almost Rs. 2000 per 10gm. But despite the correction in price, traders fear a slump in gold sales this festive season by as much as 50%.
Internationally too taking cues from positive news around trade deals between the US and China over 15-month long trade war, risk appetite of investors have now peaked a bit, fading the appeal of gold as a safe-haven. Spot gold prices were down 0.2% at $1,491.12 per ounce.
US China trade war caused recessionary concerns and in its wake gold scaled to its 6-year high levels in the global market, while it recorded a nearly 20% jump in price and climbed to its highest price breaching Rs. 40,000 levels per 10 gm.
Also, as sudden outcome isn't expected, gold price will remain supported. Also, there is expected to be reached a pathway for a Brexit deal.
In india, SGBs will also open for subscription for the second time this month ahead of festivities to promote financial savings and the issue price for the just ended offer was at a fair discount than the market rate of gold.