Gold prices decline by almost 8 per cent in a month

During Wednesday’s trading session, gold prices slipped again as profit booking was seen across equities. Sensex was in negative territory, down by more than 300 points.

Tracking the decline in the global rates, gold futures on MCX fell by 0.54 per cent to Rs 51,074 per 10 grams. Silver futures also dipped by 1.13 per cent to Rs 67,721 per kg.

The decline in the yellow metal prices was witnessed amid the rising tensions between the US and China. The US-China trade relations have been a matter of concern as the US customs and border protection officers are said to have prepared orders to block imports of cotton and tomato products alleging that they are produced with forced labour in the western Chinese province of Xinjiang.  Some market reports state that the US may also impose sanctions on China's biggest chipmaker, Semiconductor Manufacturing International Corporation (SMIC).

Gold tends to benefit from central banks’ widespread stimulus measures as it is widely viewed as a hedge against inflation and currency debasement. European central bank is set to hold a monetary policy meeting on Thursday while, US Federal Reserve’s is scheduled for the next week.

Besides, a strong rupee has also pulled the prices lower on the MCX.