Diminishing concerns over US-China trade deal has eased gold prices in India and globally. On Wednesday, gold futures were trading 0.25 percent or Rs 95 lower at Rs 37,623 per 10 grams on MCX. It is the seventh consecutive session of fall in the metal's price.
In the international market, spot gold was down by 0.1 percent to $1,459.20 an ounce. It had touched a two-week low of $1,450.30 in the previous session. The decline comes after American President Donald Trump commented on Tuesday that Washington was close to an agreement on the first phase of a trade deal after the negotiators from both the countries agreed to work on remaining issues.
Appetite for riskier assets improved among traders around the globe on trade optimism. The US-China trade disagreement has been weighing on gold for over a year now, dictating its price movement.
However, despite optimistic statements, investors now await significant signs of development, like the signing of the deal on paper. This is because concerns on a slowdown in economic activity and the possibility of complications in trade negotiations after bills passed by the US in support of anti-government protests in Hong Kong remain.
Recent data on China's industrial front showed profits of firms fell to their steepest in 8 months in October. Further, US consumer confidence fell for a fourth straight month in November.
Concrete signs of a definitive US-China trade deal will help ease economic slowdown and boost optimism in the markets. A positive market outlook dulls the appeal for the safe-haven metal, pushing its prices down.