Trading opened for the last week with the gold rate in India holding at Rs.38,200 per 10 grams on 25 November 2019 with equity markets gaining on account of positive developments in the interim US-China trade deal.
With both China and the United States announcing the signing of an interim trade deal by the end of December, investors, as well as market participants, gravitated towards riskier assets such as stocks and equities.
Weak overseas trends, coupled with subdued domestic as well as global demand, led to gold prices in India dropping by Rs.300 per 10 grams over the weekend.
However, with doubts on the prolonged US-Sino trade deal resurfacing in the markets, demand for riskier assets was kept in check and gold steadied.
On 26 November 2019, 24K gold in India was recorded trading at Rs.38,200 per 10 grams with the US-Sino trade deal optimism capping safe-haven demand for the precious metal.
With market speculating over the uncertain US-China trade deal, gold prices in India edged off its previous sessions’ slump and surged by Rs.100 the next day.
With investors awaiting further hints from the US-Sino trade talks, demand for the bullion picked up. This led to gold rates in India holding at Rs.38,300 per 10 grams on 27 November 2019.
28 November 2019 saw equities surging to record levels with markets riding on the back of the possibility of an interim trade deal and the release of a stronger than expected US economic data.
Weak market trends, coupled with subdued safe-haven demand led to gold rates plunging in India by Rs.300, summing up to Rs.38,000 per 10 grams on the same day.
However, with domestic retailers and jewellers ramping up purchases to stock inventories, gold prices in India rebounded to Rs.38,300 per 10 grams on 29 November 2019.
When trading concluded for the week, gold rates were recorded holding untouched at Rs.38,300 per 10 grams on 30 November 2019 with steady domestic demand coupled with firm trends overseas.
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