On the MCX, gold futures contract receded lower by 0.27% or Rs. 106 to Rs. 39,765. In line, silver March contact also drifted lower by 0.36% or Rs. 171 to Rs. 46740 per kg. The losses in the domestic market are on the back of global cues which also saw a decline given the receding of global geopolitical tensions as also positive sentiment around US-China Phase one trade deal which is to be signed on January 15, 2020 in the US.
Also, firmness in the dollar came supportive of the gold price.
On the backdrop of geopolitical tensions, firmsness in the dollar, global central bank's resort to buying the yellow metal and loose monetary policy, gold gained its appeal as a safe-haven.
Back home, spot gold of 22K and 24K gold is priced at Rs. 39020 and Rs. 40020 per 10 gm, respectively.