24K Gold Rate in India for November 2019: Week 2

When trading commenced for the second week, 24K gold rate in India was recorded holding at Rs.38,150 per 10 grams on 11 November 2019. Prices dropped by Rs.100 from the previous session as investor sentiments recovered on account of positive developments in the US-China trade negotiations.

WIth markets focussed on riskier assets such as stocks and equities, the US stock index rose to record levels. Also, the US-China trade optimism diminished safe-haven demand further in the global market.

Subdued demand, coupled with weak global cues led to gold price in India remaining untouched at Rs.38,150 per 10 grams on 12 November 2019 and 13 November 2019.

The bullion trade, however, witnessed gold rates picking up the next day after the US President’s comments on the nation’s trade ties with the Chinese counterparts revived uncertainties over the trade deal.

Investor appetite for riskier assets also seemed dented in the global market after US President Donald Trump, in his speech, indicated that the US tariffs would be increased if no substantial developments are seen in the first phase of the trade deal.

Also Read: 24K Gold Rate in India for November 2019: Week 1

With market participants and investors gravitating towards safe-haven assets such as the bullion, gold prices in India surged by Rs.370 and the precious metal was recorded trading at Rs.38,520 per 10 grams on 14 November 2019.

However, with Lary Kudlow the White House economic advisor confirming that the United States and China are finalising on an interim trade deal between the two counterparts, investor appetite for riskier assets rebounded.

Strong US dollar indexes coupled with the well-performing equities led to gold rates in India dropping by Rs.120 to Rs.38,400 per 10 grams on 15 November 2019.

On 16 November 2019, Gold prices declined for the second consecutive session as safe-haven demand for the bullion derailed with investors banking on riskier-assets amid revived trade optimism.

Gold was recorded trading at Rs.38,340 per 10 grams after prices dropped by Rs.60 on account of subdued safe-haven demand compounded by weak market trends overseas.

Also, stock markets touched record highs soon after US officials confirmed that the US-China trade negotiations were on course to the completion of “phase one” trade agreement.

When trading concluded for the week, the yellow metal was priced at Rs.38,340 per 10 grams on 17 November 2019 with domestic as well as global demand capped by the strong US greenback and well-performing equity markets.

Uncertainties in the US-Sino trade negotiations coupled with uneven market cues resulted in gold rates surging by 0.50% during the week.

For any clarifications/feedback on the topic, please contact the writer at viswanathan.v@cleartax.in

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