When trading opened for the penultimate week of September, the gold rate in India was recorded holding at Rs.37,900 per 10 grams on 23 September 2019. Prices picked up over the weekend as safe-haven demand gained on the Middle East tension, resulting in investors hedging on the bullion.
Prices remained untouched at Rs.37,900 per 10 grams until 25 September 2019 with investors refraining from purchases amid an improved optimistic US-Sino trade tone. The improvement in the trade discussion also resulted in the concerns over the economic slowdown being offset.
On 26 September 2019, gold price in India rose by Rs.100 to Rs.38,000 per 10 grams of 24K gold. The rise in rates could be attributed to calls for the presidential impeachment in the United States, which resulted in a downfall of the equity market.
However, with market participants and investors banking on the US dollar despite the impeachment inquiry into President Trump, the market appeal for safe-haven assets such as the bullion dropped.
The wake of political uncertainties in the US, coupled with the firm US greenback led to gold rate in India dropping by Rs.200 to Rs.37,800 per 10 grams on 27 September 2019.
With the US dollar capping the gains on the bullion, demand remained subdued for the remainder of the week. The stronger-than-expected US economic data, coupled with multi-week highs of the dollar against other emerging currencies, led to gold prices remaining unchanged at Rs.37,800 per 10 grams on 29 September.
Weak market trends overseas coupled with subdued demand, domestic as well as global, resulted in gold rates declining by 0.26% during the course of the week.
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