Precious metals: Gold, silver continue to weaken

Precious metals: Gold, silver continue to weaken

Agency News

The value of spot gold and silver move nearing its monthly low level amid continued weakness.

Improving sentiment around US-China trade relations, coupled with positive US economy data and poor physical demand in Indian markets, is turning investors towards riskier assets and away from the safe haven instrument. The change in investor perception is likely to further weaken prices of the yellow metal. Upbeat headlines about trade talks between Washington and China helped Asian shares regain footing, while the dollars rose, making bullion expensive for holders of other currencies.

International spot gold ended lower, on Monday, by 0.49 per cent at USD 1,454.9 per ounce. On Tuesday in opening trade, Comex gold for December quoted at USD 1,455 down by USD 1.9 an oz from previous close.

Tracking the international price trend, India spot gold may slip below Rs 38,000 per 10 grams on Tuesday after closing at Rs 38,023 (for 999 purity spot as quoted by IBJA) on Monday.

Silver continued negative trend with demand taking a hit. Spot silver on Monday ended at Rs 44,250 per kg (IBJA spot rate). Analysts said that the gold prices was trading weak after the US and China expressed willingness to sign a 'phase-one' trade deal by the year-end.