When trading began for the penultimate week, the gold rate in India was recorded holding steady at Rs.38,500 per 10 grams on 21 October 2019.
Demand for the metal remained unhinged with investors banking on safe-haven assets amid the US-Sino trade talks and Brexit uncertainties.
Though hopes for a trade deal between the US and Chinese counterparts unlifted the appetite for riskier assets in the market, the safe-haven metal held its ground with investors hedging against the probable market crisis.
Strong demand despite the uneven market trends overseas resulted in gold prices in India remaining unchanged at Rs.38,500 per 10 grams for the next couple of days.
With investors and market participants awaiting clarity on the Brexit deal between the European Union and Britain, investors continued banking on the bullion and gold in India was priced at Rs.38,500 per 10 grams on 24 October 2019.
On 25 October 2019, the market witnessed a spike in the bond markets which provided the safe-haven asset with necessary support amid the financial and political uncertainties overseas. This led to prices surging by Rs.300 and gold was recorded trading at Rs.38,800 per 10 grams during the closing hours.
However, trade optimism on the US-Chinese dispute over the next couple of days ended with the stock markets recovering and paring gains on the bullion. This led to the precious metal trading firm at Rs.38,800 per 10 grams on 26 October 2019.
Trading concluded with gold rates in India holding at Rs.38,800 per 10 grams on 27 October 2019, registering a 0.78% increase in prices during the course of the week.
For any clarifications/feedback on the topic, please contact the writer at viswanathan.v@cleartax.in
Abbreviation is the name of the game – SIP, NPS, ELSS, KTM, and OMR.
Vishnu is the cat that got too curious. He can normally be found staring at market charts or drooling over his Real Madrid curios.
Favourite quote: ” Madrid, Madrid, Madrid ¡Hala Madrid! Y nada más”
