The week began with gold in India trading at Rs.37,660 per 10 grams on 19 August 2019 as an incline in the equities market coupled with the recovering US dollar capped investor demand. With the US Treasury yields indicating a rising curve, gold rates inched down by over 1% over the weekend.
Gold prices dropped further to Rs.37,630 per 10 grams the next day amid the recovering risk appetite among market participants and investors.
However, the bullion trade picked up the pace after the US Treasury yields declined amid expectations of a laidback monetary policy as a countermeasure for the speculated economic slowdown.
Gold rate in India was recorded holding at Rs.37,810 per 10 grams on 21 August 2019, thanks to strong domestic demand brought about by positive market trends overseas.
The bullion traded at Rs.37,782 per gram on 22 August 2019 before surging by Rs.30 to trade at Rs.37,802 per gram on 23 August 2019 on account of an increased domestic demand amid firm global cues.
The rise in gold prices can also be attributed to the growing safe-haven appeal among investors with markets focussed on the Jackson Hole’s seminar for interest rate-cut direction.
With the US Fed chief Jerome Powell confirming market speculations of a dovish monetary policy stance, gold prices in India rose by over Rs.62 and were recorded holding at Rs.38,640 per 10 grams on 24 August 2019.
Gold surged by over 2% globally as equity markets tumbled after the announcement of the new US tariffs on Chinese goods, escalating the US-Sino trade war.
Strong safe-haven demand coupled with favourable market cues led to gold closing steady at Rs.38,640 per 10 grams on 25 August 2019. Gold experts expect domestic demand for the precious metal to surge further over the next couple of weeks with the festive season of Ganesh Chaturthi just around the corner.