When trading opened for the last week, the gold rate in India was recorded holding firm at Rs. 40,260 per 10 grams on 26 August 2019 as the bullion hovered near its 6-year high level. The surge in prices could be attributed to the rise in safe-haven demand among investors following the Fed chief Jerome Powell’s speech.
The precious metal continued trading at the same price the next day, thanks to the strong demand brought about by favourable market trends overseas.
Investor demand hit a slump with market participants assessing and seeking clarity on the US-Sino trade war direction. This led to gold prices in India plummeting to Rs. 40,085 per 10 grams on 28 August 2019.
With markets speculating over a possible global economic recession, demand surged with investors hedging on safe-haven assets such as the bullion. This led to the metal rates rebounding to record-breaking highs globally. Gold was priced at Rs. 40,410 per 10 grams on 29 August 2019.
However, with the US dollar regaining lost ground against other currencies, investors switched from the commodities to the equity markets. This led to the gold price in India plunging by over Rs. 605 to stand at Rs. 39,805 per 10 grams on 30 August 2019.
Weak global cues, coupled with subdued demand resulted in the yellow metal trading at Rs.39,800 for the remainder of the week. With the domestic festive season of Ganesh Chaturthi just around the corner, gold rates in India can be expected to surge over the next week with increased demand from local jewellers and retailers.