Gold opened for the week in India with the metal trading firm at Rs 35,180 per 10 grams on 22 July 2019. Gold prices picked up considerably with investors and market participants banking on the bullion amid rising tensions in the Middle East and poorly performing financial markets.
However, investor demand for the metal plunged with the US dollar recovering to a one-week high. With market experts speculating over the US Federal Reserve’s monetary policy review, demand dropped further. Gold rate in India was recorded at Rs 34,980 per 10 grams when trading concluded on 23 July 2019.
Thanks to an increased demand for safe-haven assets amid the US-Sino trade negotiations, gold prices surged to Rs 35,010 per 10 grams on 24 July 2019. Though the bullion banked on the escalating tensions in the Middle East, the gains were capped by the well-performing US dollar.
The yellow metal prices surged by Rs 20 to Rs 35,030 per 10 grams on 25 July 2019 before plummeting to Rs 34,990 per 10 grams the following day. The decline in prices can be attributed to the well-performing US dollar index, which gained against a basket of other major currencies.
The precious metal consolidated its gains towards the end of the week following the release of the US employment data. With market participants anticipating a sharp interest rate cut in the Federal Reserve meeting, gold prices held its ground at Rs 34,980 per 10 grams for the remainder of the week.