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Gold prices in India fall from recent highs as investors rush for riskier assets

Gold prices in India fall from recent highs as investors rush for riskier assets

Gold prices in India fall from recent highs as investors rush for riskier assets
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By Bivekananda Biswas  Jan 10, 2020 12:52:06 PM IST (Updated)

Gold and silver prices in India on Friday extended their recent losses as de-escalation in US-Iran tensions brought relief to equities markets and boosted investors' appetite for riskier assets.

Gold and silver prices in India on Friday extended their recent losses as de-escalation in US-Iran tensions brought relief to equities markets and boosted investors' appetite for riskier assets.

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Gold prices declined for the third day in a row on Friday. Gold futures (February) prices on MCX fell 0.50 percent to Rs 39,632 per 10 gram. Earlier this week, gold prices in India had surged to a record high of Rs 41,293 per 10 gram. Silver futures also fell 0.35 to Rs 46,414.
Gold prices also fell in the global market after US-Iran tensions eased, boosting investors' appetite for riskier assets. Spot gold fell 0.3 to $1,547.55 per ounce on Friday.
SMC Global Securities in its daily report said: “Gold can dip lower towards 39,500 while taking resistance near 39,900 while silver can test 46,000 while taking resistance near 47,000. Investors are now focused on a 'Phase 1' trade deal signing between Washington and Beijing next week.”
US House of Representatives passed a resolution on Thursday to stop Donald Trump from further military action against Iran.
As the tensions between the US and Iran subsides to some extent, equity markets rebound.
Anuj Gupta, Deputy Vice President - Research (Commodities and Currencies), Angel Broking, said: “Gold price is trading down today on the expectation of ease of War tension between US and Iran. US-China trade deal will be signed on Jan 15 2020, which at this moment looks positive.”
“For intraday, we are expecting that gold may trade lower today and test  39,400 levels. Sanctions on Iran may escalate the war tension which may support gold prices further. Gold has strong support at 39,400 – 39,300 levels ($1,535 -$1,530). Resistance at 39,900 – 40,100 levels,” said Gupta.
Global equities market hit an all-time high, which dilutes the safe heaven demand of bullion, he said.
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