When trading began for the week, the gold rates in India was recorded holding at Rs 41,200 per 10 grams on 16 March 2020 after an emergency interest rate cut by the US Federal Reserve weighed on the dollar and equities markets, pushing demand higher for the safe-haven asset.
However, gold prices in India dropped by Rs 1000 on 17 March 2020 as investors rushed to the market to liquidate their assets to ensure cashflow amid the ongoing coronavirus pandemic. Gold was recorded trading at Rs 40,200 per 10 grams owing to the reduced demand amid the weak market trends.
With the US central bank implementing measures to ensure liquidity in the market amid fears of a slowdown in the global economy, gold rate in India recovered by Rs 700 and the precious metal was priced at Rs 40,900 per 10 grams on 18 March 2020.
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With market participants and investors concerned over the epidemic and its impact on the economic condition, the bullion trade tumbled, and gold in India was recorded trading at Rs 40,600 per 10 grams on 19 March 2020.
Gold continued trading at Rs 40,600 per 10 grams the next day before surging by Rs 10 to Rs 40,610 per 10 grams on 21 March 2020 as the safe-haven asset rose on the back of the countermeasures implemented by central banks around the world to limit investors from over liquidating their assets.
The week came to an end with gold price in India closing at Rs 40,620 per 10 grams on 22 March 2020 amid the uneven market trends brought about by the stimulus measures by various central banks to suppress the impact of the coronavirus pandemic on the global economy.
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