After the previous session's gain of 0.91% or Rs. 350 per 10 gm, gold prices have largely remained steady on the occasion of Hindu festival Dhanteras at Rs. 38510. Gold buying is considered highly auspicious on Dhanteras. Amid buying in the precious yellow-metal by investors, the gold price could climb higher. Since the last Diwali, gold has reaped 20% returns for investors.
On MCX, gold futures contract after cooling slightly rose 0.04% or Rs. 14 to Rs. 38,366 per 10 gm. Silver prices on MCX rose 0.86% or Rs. 396 to Rs. 46388 per kg, adding to previous day's gain of 1.5%.
In global markets, gold prices today surged to a two-week high of $1504.35 per ounce on expectations of yet another rate cut by the US central bank later during the month. Indicating sluggish business investment environment, new orders for the U.S manufactured capital goods decreased more than expected in September, at the same time shipments also inched lower. So, far, the US Federal bank has reduced key policy rates twice this year.
Meanwhile, uncertainty on Brexit front continues as the UK Prime Minister Boris Johnson recommended general elections for resolving the long-pending issue.
Gold prices have got a sharp boost this year in the wake of US-China trade war, global growth worries and monetary policy easing. Notably, in Budget 2019, the government increased import duty on gold to 12.5%, which has increased the landed cost of gold in the country, affecting retail demand for the yellow metal.