Gold price today: Yellow metal falls as rally in equity market dents safe-haven demand

Gold prices fell in futures trade on September 20 after the rally in equities dented the demand of gold as the safe-haven metal.

Market benchmarks Sensex and Nifty posted their biggest single-day gains in 10 years after Finance Minister Nirmala Sitharaman announced a cut in corporate tax rates.

Rupee's rise against the US dollar also weighed on gold prices. The Indian currency settled 38 paise higher at 70.94 per dollar.

The Yellow metal weakened for the fourth consecutive day in a row to trade below Rs 37,500 per 10 grams.

Around 1730 hours, MCX Gold traded at Rs 37,479 per 10 grams, down Rs 207, or 0.55 percent on September 20.

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“After the US Federal Reserve meeting outcome there is no clarity on further rate cuts, and gold and silver traded sideways in the international market. Silver prices closed around Rs 46,500 levels,” Manoj Kumar Jain, Director at IndiaNivesh Commodities Pvt. Limited told Moneycontrol.

“After the Fed outcome, dollar index showed some profit taking which supported gold and silver prices. Looking to the geopolitical tensions between Iran and Saudi Arabia and selling pressure in the domestic equity market we expect the rupee to weaken further and this could support gold and silver prices in the domestic market,” he added.

Jain further added that Gold prices expected to hold 37,500 and could move in the range of 37,500-38,000. Silver prices could hold 45,800 and we expect it to move in the range of 45,800-46,800.