Gold and silver prices struggled in Indian markets today amid choppy global trends. On MCX, gold futures prices were today down 0.14% to ₹37,740 per 10 gram while silver rates were down 0.24% to ₹46,267 per kg. Gold and silver prices in India have been choppy this month after hitting new highs earlier this month. Gold prices are down ₹2,150 per 10 gram from their highs of ₹39,885. Similarly, silver is down ₹5,220 a kg from its high of ₹51,489.

In global markets, gold prices have remained choppy over the past few weeks after hitting a six-year peak above $1,550 an ounce. Currently, gold prices are ruling at around $1,506.25 an ounce in global markets.

On the downside, gold prices have been supported by global growth worries, easing monetary policies of major central banks and increased geopolitical tensions, say analysts. The political turmoil in Washington and ETF inflows have also helped support gold prices, resulting in dips being bought into.

Gold prices tend to go up on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion.

“Gold has come off recent highs as improved risk sentiment resulted in some correction. However, we expect buying interest to emerge at lower levels as global concerns are far from over,” Kotak Securities said in a recent note.

The holdings of SPDR Gold Trust, the world’s largest gold-backed ETF, jumped to 924.94 tonnes on Wednesday, up 1.8% from the previous day.

US economic data, central bank comments, trade related and geopolitical development may continue to affect US dollar as well as risk sentiment and thereby gold price, says Kotak Securities.

In global markets, silver prices have come off recent lows on expectations that industrial metals will benefit from any possible US-China trade deal but global growth worries kept a check on prices, say analysts.

The recent correction in gold prices in India comes ahead of the start of the festive season and is expected to lift jewellery demand. Physical buying is likely to pick up once the Pitru Paksha or the Shradh period ends this Saturday. The October to December quarter is typically a strong quarter in India in terms of gold demand as physical buying picks up due to festivals like Dussehra and Diwali and wedding-related buying. (With Agency Inputs)