Gold prices in India today marginally inched higher after recent declines. On MCX, gold futures prices traded 0.06% higher at ₹37,940 per 10 gram. Silver prices on MCX fell marginally by 0.08% to ₹45,951 per kg. After the recent decline, gold prices are lower by about ₹2,000 per 10 gram from its September highs of about ₹40,000 per 10 gram. Silver has also corrected from the level of about ₹51,500.

In global markets, gold prices were steady at $1,488.23 per ounce ahead of monetary policy announcement by US Federal Reserve later in the day. Analysts expect the US central bank to cut interest rates by 25 basis points for the third time this year later in the day.

Meanwhile, there are some doubts whether US and China will be able to complete an interim trade agreement for signing next month, as expected earlier. The agreement may not be completed in time for signing in Chile next month as expected but that does not mean the accord is falling apart, Reuters reported citing an US administration official.

Gold prices in global markets are up 16% so far this year, supported by safe-haven demand. The precious metal is seen as a safe investment times of political and financial uncertainty.

“Gold price has come under pressure after failing to break past the $1520 per ounce level last week. Price continues to be in the broad $1480-1520/ounce range as more clarity is awaited on trade front, Brexit and Fed’s monetary policy,” Kotak Securities said in a note.

“The Fed is largely expected to cut interest rate for the third consecutive time owing to challenges to US and global economy. However, Fed’s hesitance on starting a monetary easing cycle has caused some uncertainty. Fed is most likely to maintain an open ended stance however market players are worried that the central bank may indicate a halt after this week’s rate cut and this has kept gold under pressure,” the brokerage said.

Weakness in gold on back of improved risk sentiment has brought a halt to silver’s recent rise, Kotak Securities said.

Many investors have moved to the sidelines awaiting clarity on US-China trade deal and US Fed stance. The holding of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.13% to 917.31 tonnes on Tuesday from 918.48 tonnes on Monday.

Meanwhile, uncertainty on the Brexit front continued. Britain will hold election in December after Prime Minister Boris Johnson won approval from the parliament for an early ballot aimed at breaking the Brexit deadlock. (With Agency Inputs)