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Last Updated : Sep 13, 2019 04:44 PM IST | Source: Moneycontrol.com

Gold price today: Yellow metal recoups losses, trades above 37,800

On MCX, October gold futures traded 0.20 percent lower at around Rs 37,675 per 10 gram, down Rs 75. It has fallen more than Rs 2000 from last week's highs of Rs 39,885.

Kshitij Anand @kshanand

Gold prices rebounded in futures trade on September 13, as participants raised their bets, tracking demand by local jewellers at spot markets.

Around 1640 hours, MCX Gold traded at Rs 37,840 per 10 grams, up by Rs 90.

The yellow metal was trading in the red in early trade and it appeared that the decline would continue the second week running, as optimism over US-China trade talks fuels risk-on sentiment.

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At one point on MCX, October gold futures prices traded 0.20 percent lower on September 13 at around Rs 37,675 per 10 gram, down Rs 75. It had fallen more than Rs 2,000 from last week's highs of Rs 39,885.

Appreciation in rupee's value against the US dollar has also put pressure on domestic gold and silver prices. The rupee hit a new four-week high in intraday trade against the dollar on September 13.

Experts feel that gold has important support placed near 37,500 levels, and the long-term trend still remain bullish.

“Gold prices, after making six-year high in the international market, show some correction from the high levels. Even in the domestic market after touching a lifetime high of around 40,000, prices corrected around 2,000 points,” Manoj Jain, Director & Head of Commodities, IndiaNivesh Securities Limited, told Moneycontrol.

Withdrawal of extradition bill from Hong Kong by China, hopes of resumption of US-China trade talk and strength in rupee were putting pressure on prices. However, the long-term trend of gold was still bullish due to Brexit worry, global slowdown and the currency war, Jain said.

“We expect gold to hold important support of Rs 37,500 in the domestic market and can buy around this levels, we expect a bounce back in the prices in next two-three days and could test 38,200-38,300 again,” he said.

In the international market, spot gold was trading flat at $1,497.81 per ounce. Prices have dropped about 0.6 percent so far this week, poised for a third consecutive weekly decline, a Reuters report said.

Gold prices have been the rising for the past three months on the back of slower economic growth, rising investment in ETFs and strong buying from central banks.

Historically, gold prices have stayed supportive during the Fed easing programme. The European Central Bank (ECB) reduced rates on September 12 and now all eyes are on US Fed’s next week meeting.

“The recent rise in bond yields is the key reason why gold has recently fallen after making a high of $1566/oz. In the near-term, if gold does not breach the strong support of $1488/oz then another attempt to the recent high is expected. Further easing from ECB and US Fed will further support gold prices,” said Sakina Mandsaurwala, commodity analyst, Narnolia Financial Advisors Ltd.

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First Published on Sep 13, 2019 10:51 am
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