Business: Gold continued to fall for the fourth day ahead of the Federal Reserve’s monetary policy decision. Due to cautious attitude of investors, gold futures price fell by Rs 176 to Rs 1,19,470 per 10 grams on Wednesday.

Gold price on MCX fell for the fourth consecutive day
On the Multi Commodity Exchange (MCX), gold futures for December delivery fell for the fourth consecutive trading session. Its price fell by Rs 176 or 0.15 percent to Rs 1,19,470 per 10 grams. It was traded for 13,116 lots.

Globally, Comex gold futures for December delivery were trading down $15.9, or 0.4 per cent, at $3,967.2 an ounce, marking the fourth straight day of decline.

Silver price increased by Rs 451
However, silver futures rose due to price buying. Silver for December delivery rose by Rs 451, or 0.31 per cent, to Rs 1,44,793 per kg. It was traded for 20,331 lots. Silver futures for December delivery on Comex rose 0.32 percent to $ 47.47 an ounce.

Investors are keeping an eye on Fed Chairman’s comments
Jigar Trivedi, senior research analyst at Reliance Securities, said gold prices remained around $3,970 an ounce on Wednesday as the focus was on expectations of interest rate cut by the Federal Reserve (Fed) later.

The market is expecting a cut in interest rates
He said traders are also keeping an eye on signals from Fed Chairman Jerome Powell about the future of monetary policy, as the market is already expecting another interest rate cut in December. Trivedi said investors are keeping an eye on progress on a potential US-China trade breakthrough. This may further reduce the demand for safe investments.

Investors eye China-US trade talks
Meanwhile, a framework agreement is expected to be finalized by US President Trump and Chinese President Xi Jinping. Its aim is to stop US tariff increase and ease China’s restrictions on rare earth elements exports.

Despite the weakness, Jigar Trivedi said the precious metal is on track for its third monthly gain and is up nearly 50 per cent this year. This is supported by economic and geopolitical uncertainties, strong central bank purchasing and concerns over currency devaluation.