Trading commenced for the week with gold rates in India gaining ahead of the Sino-American trade negotiations. With markets showing minimal hopes of a breakthrough in the trade talks, demand for safe-haven assets picked up and gold was recorded trading at Rs.38,600 per 10 grams on 7 October 2019.
However, with the US dollar gaining against other apex currencies in the global market, demand for the precious metal remained capped. This led to gold in India being priced at Rs.38,600 per 10 grams on 8 October 2019.
Prices remained unchanged at Rs.38,600 per 10 grams until 10 October 2019 before a sense of optimism concerning the US-Sino trade conflict among investors impacted safe-haven demand for the bullion.
Also, the demand for riskier assets picked up globally with reports of a Brexit deal in progress. This proved to work against the bullion market, and the gold rate in India was recorded holding at Rs.38,300 per 10 grams – Rs.300 lower that the previous session – on 11 October 2019.
Subdued investor demand, compounded by the weak global cues led to gold prices remaining untouched at Rs.38,300 per 10 grams on 12 October 2019.
The week concluded with gold rates closing slightly higher at Rs.38,310 per 10 grams on 13 October 2019 with demand capped by an increased appetite for riskier assets amid the strengthening dollar and well-performing equities.
For any clarifications/feedback on the topic, please contact the writer at viswanathan.v@cleartax.in
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