On Monday, Spot gold prices declined by 0.05 percent to close at $1327.1 per tonne. On Sunday US President Trump stated that he would delay an increase in U.S. tariffs on Chinese goods which signalled towards easing of trade tension between both the countries. Trump further added that he was optimistic that a final trade deal could be reached with China which improved the risk sentiments amongst the investors in turn pushing the Dollar lower. Hopes over trade deal between US & China supported Gold; however, possibilities of another rate hike by FED kept the prices in check. On the MCX, Gold prices declined by 0.65 percent to close at Rs.33300.0 per 10 gms.
Markets will have a keen watch on the testimony by U.S. Federal Reserve Chairman Jerome Powell which is today and tomorrow for further hints on the rate hike. On the MCX, gold prices are expected to trade sideways today; international markets are trading marginally higher by 0.11 percent at $1331.25 per ounce.