Gold prices in the Indian market plunged for a third consecutive day, tracking muted global cues. Gold prices on MCX were down 0.11% to ₹37,850 per 10 gram. After touching highs of Rs 40,000 previous month, prices of the yellow metal have fallen drastically and are now about ₹2,150 per gram from their record highs.
Similarly, Silver prices were also muted today, down 0.1% to ₹45,387 per kg. Gold prices in global markets remained flat at $1,484.12 per ounce as global equity market sentiment improved as stocks cheered progress in trade talks between the US and China.
However, the precious yellow metal found support from a lack of clarity in the negotiation details.
Chinese foreign minister, Le Yucheng, on Tuesday said that China and the US have achieved some progress in their trade talks. Earlier, US President, Donald Trump too voiced optimism about a deal.
The development in risk-on sentiments had affected the gold prices. After failing in the first attempt to get votes on Brexit, today, the British Prime Minister, Boris Johnson, will again try to get the first stage of the withdrawal bill through the Parliament.
Experts believe that gold will draw support from the possibility of another 25 basis point rate cut from the Federal Reserve later this month.
Despite the recent fall, gold prices are up about 20 per cent in the year so far, affecting the retail market. On Monday, ahead of Diwali and Dhanteras, a new tranche of gold bonds was opened for subscription for Rs 3,835 grams per gram. People playing online can avail Rs 50 discount on per gram.
(With input from agencies)