On 9 December 2019, trading opened with gold price in India holding steady at Rs.38,100 per 10 grams as investors and market participants refrained from making purchases ahead of the two-day US monetary policy review meeting on 10 December 2019.
Also, with investors hedging on the bullion amid concerns over the US-China trade negotiations, prices remained relatively untouched, and gold in India was recorded trading at Rs.38,100 per 10 grams on 10 December 2019.
However, a decline in demand from domestic jewellers and retailers across the country led to gold prices dropping by over Rs.400 to Rs.37,700 per 10 grams on 11 December 2019.
Despite the market speculations of a new possible US tariff on Chinese imports, the positive global cues failed to stir up domestic demand in India.
Prices remained untouched for the next couple of days with the bullion gains capped after Trump’s comments on the US-Sino trade deal stoked investor appetite for riskier assets.
US President Donal Trump had reportedly announced that both the US and the Chinese counterparts are close to a trade deal. This eventually led to investors leaning on riskier assets globally.
Weak trends overseas coupled with subdued safe-haven demand led to gold price in India remaining untouched at Rs.37,700 per 10 grams until 13 December 2019.
However, gold rates picked up by Rs.200 to Rs.37,900 per 10 grams on 14 December 2019 as the US dollar index lost against a basket of other apex currencies with markets seeking more clarity on the trade deal between the US and China.
The weakened dollar, coupled with the under-performing equities led to gold prices remaining untouched at Rs.37,900 per 10 grams for the remaining of the week.
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