Trading commenced for the month with gold rates in India holding steady at Rs.40,260 per 10 grams on 1 September 2019. Investor demand for the bullion remained high with the US and Chinese counterparts launching retaliatory tariffs against each other, prolonging the trade war and raising concerns over a global economic recession.
Gold continued trading at Rs.40,260 per 10 grams on 2 September 2019 before surging by Rs.252 to trade at Rs.40,512 per 10 grams on 3 September 2019. The incline in prices can be attributed to the strong domestic demand brought by the festive season of Ganesh Chaturthi coupled with the continued US-Sino trade war.
Favourable market trends overseas coupled with strong global as well as domestic demand led to gold price in India surge again by Rs.562 per 10 grams. The yellow metal was recorded trading at Rs.41,070 per 10 grams during the closing hours of trading on 4 September 2019.
Demand, however, witnessed a decline over the next few days as investors refrained from the commodities market with the US dollar index recovering lost ground against other major currencies. This led to gold being priced at Rs.40,920 per 10 grams and Rs.40,400 per 10 grams on 5 September 2019 and 6 September 2019 respectively.
With the release of a strong than expected US economic data, the US greenback continued to dominate in the global markets. This led to gold prices plummeting towards the end of the week. Gold price in India was recorded holding at Rs.40,110 per 10 grams on 7 September 2019 before falling below the Rs.40,000-mark to Rs.39,110 per 10 grams during the closing hours of trading on 8 September 2019.