Mumbai, July 1: The gold prices in the global market slipped below $1400 an ounce after Donald Trump and Xi Jinping at the G20 summit agreed to resume US-China trade negotiations. According to a Livemint report, the spot gold rates fell as much as 1.8%, which is the the biggest intra-day fall. Apart from the geo-political tensions, the expected rate cut by the US Federal Reserve has also pushed up gold prices. All eyes will now be on the US jobs data due this Friday for clues on Federal Reserves next move on policy.  Donald Trump Becomes First Sitting US President to Step Into North Korea; Meets Kim Jong-un in Demilitarized Zone; Watch Video.

Echoing the global sentiment, in India too the gold prices fell sharply. On MCX, gold futures for August delivery fell below the ₹34,000 per 10 gram, when they declined 1.2% to ₹33,810. Reduced demand from the jewellers and a weak global trend dented the precious metal's appeal as safe haven, according to the All India Sarafa Association.

According to an Economic Times report, the Indian investors further need to keep track of domestic factors and the upcoming Budget this Friday. Traders hope that there will be some cut in the gold import duty, which will result in a fall in domestic prices.  The high import duty is causing several problems for the legitimate players and there is an increase in gold smuggling cases as well.

(With additional inputs from agencies)

(The above story first appeared on LatestLY on Jul 01, 2019 04:51 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).