NEW DELHI : Tracking global bullion markets, gold prices has so far declined by ₹250 per 10 gram this month. At MCX, in the opening trade, gold rates fell by ₹19 at ₹37,754 per 10 gram. Last Friday, gold future prices had ended the day with a ₹256 gain on the MCX. Silver‘s March futures, which had gained ₹255 on Friday, jumped by ₹44,202 a kg today.

The drop in gold prices steepened after the news that US and China have reached a historic agreement on a phase one trade deal. In tough and turbulent time, gold is seen as a safe haven for investors. With the positive news around trade war, gold prices declined, said Abhishek Bansal, Chairman, ABans Group of Companies.

Gold prices have risen nearly 15% this year on the backdrop of the months-long tariff war and its impact on the global economy.

“Investors are turning increasingly ‘risk-on’ after the phase one agreement, so that is likely to weigh on gold prices,” Phillip Futures analyst Benjamin Lu said, adding that the dollar’s weakness is, however, providing some underlying support to bullion.

In the international bullion market, gold prices edged lower today. Spot gold was down 0.1% at $1,474.46 per ounce. U.S. gold futures were down 0.2% at $1,478.80.

“Gold prices are not going to slide as the global growth is not super positive, there are still some risks,” Phillip Futures’ Lu said. “Gold will range between $1,400-$1,450 an ounce.”

With the Federal Reserve leaving little room for a hike in interest rates next year, gold prices were all set to zoom had it not been for the US-China tariff deal.