Gold price today: Yellow metal gains ahead of US-China trade talks

Gold prices have rebounded in futures trade on October 7 as markets braced for U.S.-China trade negotiations during the week with lesser hopes of a breakthrough.

The next round of U.S-China trade negotiations is likely to be held in Washington on Oct. 10-11. The US President said that he was confident of reaching a deal while another report suggested that  Chinese officials might be increasingly reluctant to agree to a broad trade deal pursued by Trump had made this uncertain, said a Reuters report.

The yellow metal's December futures traded at Rs 38,350 per 10 gram, up by Rs 17 or 0.04 percent on the MCX around 1535 hours IST.

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Last week, Gold prices were able to hold on to their crucial support of $1,500 per troy ounce on a closing basis at Comex division.

Silver prices also held on to their crucial support of $17.40 on the weekly closing basis at Comex division. Prices tested a low of $16.94 last week and sharply recovered from the lows.

International Gold prices, after testing a low of $1,460, recovered sharply after downbeat US manufacturing and services PMI data which increased the probability of further rate cuts by the US Federal Reserve in the next policy meeting.

“Apart from easing geopolitical tensions and the possibility of a positive outcome of US-China trade talks this week puts pressure on the Prices. We expect gold prices to consolidate in the range of $1484-1532 this week,” Manoj Kumar Jain, Director at IndiaNivesh Commodities, told Moneycontrol.

“At MCX, prices are expected to trade in the range of Rs 37,770-38,600 this week and either side of the breakout of the range will give further direction to the market,” he said.

Jain expects the silver prices to hold $17 per troy ounce on Comex division on a weekly closing basis and expected to move in the range of $17-18 this week.

“At MCX, prices are expected to move in the range of Rs 44,700-46,500 this week and either side breakout of the range will give further direction to the market,” he said.