Gold prices fell today in India after a sharp rise in the previous session.
A similar trend was seen in silver prices. On MCX, prices of December gold futures contracts slipped 0.16% to ₹38,343.
Gold prices had jumped 1.3% in the previous session. Silver contracts on MCX slid 0.25% to ₹45,527 after registering a 1.8% jump in the previous session. In global markets, gold prices extended gains to the fourth day today as weak US data bolstered bets of further rate cuts by the Federal Reserve. Spot gold was up 0.2% at $1,508.12 per ounce.
The US dollar also came off a bit after a soft US service sector survey stoked worries about the broader US economy.
Gold traders will be closely watching the September US jobs data; to be released today, for cues on possible rate cuts by the US Federal Reserve.
Lower interest rates increase the appeal of gold as well as weigh on the dollar. Gold prices have remained choppy over the past few weeks but are off their record lows. Gold is considered a safe store of value during economic and political uncertainty.
Diwali falls toward the end of the month this year and demand is expected to spike ahead of the festival. Those who want to invest in gold will have more options as the RBI will issue gold bonds twice this month ahead of Dhanteras and Diwali.