Trading opened for the final week with the gold rate in India holding steady at Rs.38,800 per 10 grams on 28 October 2019. Prices remained unchanged from the previous session with investor demand capped by the rising US dollar and easing US-Sino trade dispute overseas.
With the US greenback gaining against a basket of other major currencies, subdued demand for the safe-haven asset led to gold price in India plummeting by Rs.400 the next day.
On 29 October 2019, gold was recorded trading at Rs.38,400 per 10 gram as markets held back on account of the US Federal Reserve meeting during the day.
However, with investors refraining from purchases ahead of the US central bank’s verdict for cues on future interest rate cuts, demand for safe-haven assets such as gold and silver picked up.
This led to gold rates in India rebounding by Rs.480 to Rs.38,880 per 10 grams on 30 October 2019.
When trading concluded for the month, gold was recorded trading at Rs.38,500 per 10 grams as prices dropped by over Rs.380 amid market expectations of positive US employment data.
The week witnessed gold prices in India dropping by 0.77% due to the US-Chinese trade uncertainties coupled with reduced investor demand ahead of the US Federal Reserve meeting.
For any clarifications/feedback on the topic, please contact the writer at viswanathan.v@cleartax.in
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