Tracking global cues, gold in India is on a falling spree for the fifth-straight day. On the MCX, gold for December contract quoted lower by 0.4% to Rs. 37744 per 10 gm. Silver in line also was down 0.65% or Rs. 291 and quoted at Rs. 44189 per kg.
In the global markets, market by positive sentiment around US-China interim trade deal, gold slipped to one-week low. Spot gold prices declined 0.1% to $1,461.02 per ounce.
Through the weekend the US national security adviser Robert O Brien iterated that a phase I trade deal between the US and China is still possible by the end of the year. At the same time, the nation cannot neglect the happenings in Hong Kong.
China has reportedly invited top US negotiators to seal at least a limited deal
In another instance, upbeat US data with respect to factory output which grew at the fastest pace in 7 month as well as the services output which accelerated more than expected, risk appetite of investors improved. Also, amid it dollar gained ground.
Other encouraging data has been on the housing front. For the October month, housing registered a growth of 3.8% versus the degrowth posted of 7.9% in the previous month. Building permits for October grew at 5% against de-growth of 2.7 percent a month ago
Gold price will further depend on the Fed Chairman speech later today and any hint on rate cut can move gold price upwards. Nonetheless, the last policy statement hinted at a pause after the Fed cut interest rate thrice this year.
In India, gold price which has so far risen by 20% this year has been a dampener and even amid festivities and wedding season has failed to fuel its demand, despite an over Rs. 2000 discount from the peak price reached of more than Rs. 40,000 per 10 gm in early September.