Trading commenced for the week with gold in India priced at Rs.37,610 per 10 grams on 12 August 2019. Demand for the precious metal remained steady with the continued US-Sino trade war raising concerns over a possible global economic slowdown.
With investors refraining from riskier assets amid fears of a global recession, demand for the metal inclined with market participants banking on the safe-haven market. This led to gold rates in India surging to its highest level in the last six years at Rs.37,930 per 10 grams on 13 August 2019.
Soon after the Trump administration decided to delay 10% of the US tariffs on specific Chinese imports, safe-haven demand for the bullion plunged. Subdued demand, coupled with unfavourable market trends led to gold trading at Rs.37,550 per 10 grams on 14 August 2019.
The safe-haven appeal, however, picked up the following day with reports indicating a downtrend in the US Treasury yield curve. The fears of a global economic slowdown resurfaced again amidst market participants as the Argentine currency crashed mid-week.
The week saw demand surging further with global economies losing steam amid the deteriorating trade talks and the Brexit uncertainties.
Positive overseas cues, coupled with strong demand, global as well as domestic, led to gold prices in India rebounding to Rs.37,990 per 10 grams on 15 August 2019.
Demand stabilised over the next couple of days as equity markets firmed amid the recovering US dollar index.
Thanks to the US-Sino trade disputes, the bullion was on track for a third consecutive weekly gain. The precious metal was recorded holding at Rs.37,930 per 10 grams the following day.
The rest of the week witnessed gold priced at Rs.37,870 per 10 grams with steady domestic on account of the rising global economic growth concerns. Market participants expect the US dollar to pick up pace over the next week amid the recovering equity markets and easing fears of a worldwide economic slowdown.