Gold Prices Gain Ahead Of US Fed’s Likely Rate Cut

Gold futures on MCX rose 0.27 percent on Wednesday to Rs 38,020 per 10 grams reflecting similar gains seen in the international markets as investors awaited US Federal Reserve's decision on interest rates.

Spot gold and US gold futures were up by 0.1 percent each to $1,489.05 an ounce and $1,491.40, respectively.

Analysts expect another interest rate cut of 0.25 percent from the American central bank, its third rate cut this year. However, the expectation of another cut in December is now only about 30 percent compared with about the 70 percent estimated earlier this month.

Movement in prices in the international market dictates the changes in the gold rates in India as well. Silver futures on MCX were up by 0.55 percent to Rs 46,240 on Wednesday.

Fears of a possible global recession, that were instigated by the US-China trade war, continue to loom. Data released on Tuesday showed that US consumer confidence has fallen for a third straight month in October.

In Europe, Britain is set to hold a December election after their Prime Minister Boris Johnson on Tuesday won approval from his parliament for an early ballot aimed at breaking the Brexit deadlock.