The gold rate today in India inched towards a rise, after poor trading during the previous week. The previous week saw three consecutive days of losses totaling over Rs 200. The week began in a better state, as gold prices on the 26th of November rose by some Rs 100 to reach the cumulative level of Rs. 31,850 per 10 gram.
Gold prices had also declined by Rs. 200 on Saturday, 24th of November, which is why the Rs. 100 gain today would somewhat cover the prices lost last week. Silver rates also continued on their trend to track gold and increased by Rs. 150 to reach the cumulative price of Rs. 37,450 per kg of silver. The increase in silver prices can also be credited to the increased demand coming from certain industrial units.
Gold with 99.9 percent and 99.5 percent purity rose by Rs. 100 each to finish the day at prices of Rs. 31,850 and Rs. 31,700 per 10 gram respectively. Sovereign gold prices, which had stayed put for much of last week, also rose by Rs. 100 during the day, as they finished with the price of Rs. 24,800 for 8 gram.
In track with the rise of gold and silver prices, prices for silver weekly-based delivery also increased by Rs. 209 to end the day at Rs. 36,309 per kg. The rates for silver coins, however, showed consistency in a day that saw cumulative gains as they maintained ground, with buying taking place at Rs. 73,000 and selling at Rs 74,000 for 100 coins.
Gold prices within India are keeping within a certain range, because of gains witnessed in the value of the rupee, in comparison to the US dollar. The last week saw the Indian rupee make gains for 5 consecutive days against the dollar. This reduced the price of imports for gold. This, backed with a decreased demand, led to gold prices going down and keeping within a tight upwards range.
The demand for gold in India, which is the second biggest consumer of gold in the world after China, usually picks up at the end of the year. This period is a festival and wedding season in the gold fanatic region. Traders are expecting that the recent fall in gold prices might help perk up demand, as buyers look to get their desired gold.
The global market saw steady rates today, as investors across the world have eyes fixated on the G20 meet and the US-China trade war. Investors and traders from the gold, stock and oil market are expecting signs of a thaw in the depleting trade relationships between China and the US.
“People are moving some of their capital into gold at this point of time, given the uncertainties around the pace of rate hikes by the Fed, the US-China trade war… People see gold as a hedge against these uncertainties,” commented Brian Lan, Managing Director at Singapore dealer GoldSilver Central.