The week commenced with the gold rate in India holding at Rs.38,300 per 10 grams on 14 October 2019 after an increased appetite for riskier assets surged amid the renewed trade deal optimism in markets. This led to prices dropping by Rs.10 per 10 grams from the previous session.
The next day, however, witnessed investors banking on safe-haven investments such as gold and silver following a lack of clarity the Sino-US trade dispute. Strong global demand, compounded by positive market cues led to gold prices in India surging by Rs.310 to Rs.38,610 per 10 grams on 15 October 2019.
Though gold rates plummeted to Rs.38,300 per 10 grams on 16 October 2019 on account of the stronger equities market, prices rebounded to Rs.36,610 per 10 grams on 17 October 2019 as equities and stock markets failed to capitalise on the Brexit negotiations.
On 18 October 2019, the markets witnessed an increase in profit-booking by investors following the forging of a Brexit deal between Britain and the European Union. This led to market participants gravitating towards riskier assets such as stock and equities and gold rates in India were recorded holding at Rs.38,500 per 10 grams.
Prices remained untouched for the next couple of days with uncertainties over the US-Sino trade dispute and the global economy capping further losses for the bullion.
The week concluded with gold price in India holding steady at Rs.38,500 per gram on 20 October 2019 with steady investor demand brought about by the firm market trends overseas.
Favourable market trends, coupled with steady global as well as domestic demand, resulted in India recording a 0.52% increase in gold rates during the course of the week.