When trading opened for the week, the gold rate in India was recorded holding at Rs.36,330 per 10 gram on 5 August 2018. With trade relations worsening between China and the United States, demand for the safe-haven assets surged globally. This led to gold hovering above its six-year high during the week.
Gold prices in India surged by Rs.280 per 10 gram on Tuesday, i.e. 6 August 2019 as the US dollar index lost considerable ground against the Chinese yen and the euro amid. According to sources, the bullion had risen by over 2%, touching its highest level in more than six decades internationally.
With the trade war between the US and China showing no signs of receding, market participants and investors continued hedging on the bullion as a safe-haven. This led to gold rates surging further to Rs.37,210 per 10 grams on 7 August 2019.
Thanks to the strong global cues, gold trade in India witnessed a significant rise in domestic demand from retail jewellers and industries. The precious metal was recorded holding at Rs.27,500 per 10 gram on 8 August 2019.
Though prices dropped to Rs.37,470 per 10 grams the following day, gold rates in India recovered to Rs.37,610 per 10 gram on 10 August 2019 with demand picking up amid the global trade tensions.
The week witnessed the bullion trade improve considerably due to the trade war implications on international trade. Gold held its ground for the rest of the week at Rs.37,610 per 10 grams, eyeing for its best weekly performance in the last three years.