Gold prices in India climbed higher on December 23 on the back of firm prices in the global markets. On the MCX, gold contract for February delivery was up 0.29% or Rs. 110 at Rs. 38,101 per 10 gm. In line silver futures for March delivery was also trading higher at Rs. 45129 per kg, up Rs. 225 or 0.5%.
Off late, gold prices in global markets have swayed between gains and losses as risk sentiment has improved on hopes of an end to a 17-month long US-China trade war with the signing of a 'Phase one' trade deal. Donald Trump, the US President over the weekend said Washington and China would very soon sign their initial trade deal. Amid such a scenario, as investors' appetite for riskier assets has increased, gains in gold price remain curbed.
In global markets, gold prices remained steady on Monday as investors awaited fresh cues on US-China likely trade deal. Spot gold prices were trading higher by 0.1% at $1,479.05 per ounce.
Gold in India is headed for a strong run-up in price so far this year with gains of almost 20%. Nonetheless, it is trading lower by Rs. 2000 per 10 gm from its September peak of Rs. 40,000 per 10 gm.
Also, the Indian government is seeking recommendations from jewellery traders and dealers on ways of improving Gold Monetisation Scheme launched in the year 2015. Under the scheme, the government plans to get hold of the large pool of idle gold lying with households and institutions for a fixed term in return for an interest rate ranging between 2.25-2.25%.
In the meantime, considering subdued demand, dealers are extending discount of up to $2.5 per ounce as against $2 per ounce last week over domestic gold prices.