Gold rate today: Gold gains as Moody's downgrades outlook on India

Bullion counters gained on Friday as traders flocked to safe-haven counters after rating agency Moody’s downgraded its outlook for India.

Moody's changed India's outlook to negative from stable while affirming India’s Baa2 ratings. Moody's expects Indian government to face very significant constraints in narrowing general government budget deficit and preventing a rise in debt burden.

MCX Gold (Dec) futures added 0.64 per cent to Rs 37,814 while MCX Silver (Dec) futures were trading 0.43 per cent higher at Rs 44,357.

However, in the global market, gold prices were tepid on Friday, after dropping up to 2 per cent in the previous session as hopes of headway in the Sino-US trade deal boosted risk-on sentiment, denting the bullion's appeal.



Global stocks rallied and the dollar index gained after officials on Thursday said that China and US have agreed to roll back tariffs on each others' goods as part of the first phase of a trade deal.

Spot gold was trading at 1,468.51 per ounce, as of 0335 GMT, poised for its biggest weekly drop since May 2017, reported Reuters. In the previous session, prices dropped to their lowest in more than a month. US gold futures were up 0.2 per cent at $1,469.80 per ounce.

As per technical charts, spot gold may fall more into a range of $1,440-$1,455 per ounce, said a Reuters analyst. The metal has found a temporary support at $1,466. It may hover above this level for one or two days or bounce towards $1,478. On the other hand, a break below $1,463 could open the way towards $1,405.