"Gold and silver prices remain volatile ahead of US-China trade talk, strength in dollar index and weakness in euro," said Manoj Kumar Jain of IndiaNivesh Commodities.
The gold prices in futures trade dropped on September 30 as fears of an escalation in trade war between US and China eased, pushing the dollar higher.
As per Reuters, gold fell in international markets as uncertainties around the US-China trade war drove some investors to the safety of the dollar, pressuring assets priced in the US currency.
The yellow metal's October futures traded at Rs 37,254 per 10 gram, down Rs 496 or 1.31 percent on the MCX, at 2045 hours IST.
The prices at MCX tested low of Rs 37,310 on September 27 while, in the international market, it had slipped below $1,500 an ounce.
"Gold and silver prices remain volatile ahead of US-China trade talk, strength in the dollar index and weakness in euro," said Manoj Kumar Jain, Director at IndiaNivesh Commodities.
He further said, if gold prices slip below Rs 37,500, it could again test Rs 37,300-37,100 levels as they are to remain volatile. "Only sustain above Rs 37,800 could give some strength towards Rs 38,050," he added.
At the UN General Assembly, US President Trump expressed optimism related to the trade deal with China. He signalled the deal could take place sooner than people thought. Trade talks will resume from October 10 in Washington. Hence, the dollar rebounded.
December silver futures also declined Rs 1,057 or 2.32 percent to Rs 44,460 per kg on the MCX at 2045 hours IST.
Silver prices at MCX tested low of Rs 44,655 on September 27 and, in the international market, fell below $17.80 an ounce."Silver prices also remain volatile and if it slips below Rs 45,300 levels then it could show further weakness towards Rs 44,800-44,500 levels. Further strength is possible only when prices sustain above Rs 45,800 and in that case it could test Rs 46,300-46,500 again," Jain said.The Great Diwali Discount!
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