The gold prices in India rose drastically since last year, with Dhanteras coming it’s way, now many Indians are giving it a second thought with regard to the utility and purchase.
This year on Multi Commodity Exchange (MCX), December gold futures rose 0.32% to Rs. 38,350 per 10 gram while last year it was Rs. 31,438 for the same. On the other hand, silver prices have inflated on MCX by 0.20% to Rs. 45,886 per kg.
The gold prices in India have always been rough since hitting a new high of about Rs. 40,000 per 10-gram last month. Now price of 24 Karat gold in Delhi traded for Rs. 39,105 per 10 gram while Silver fell by Rs.91 to Rs. 46,809 per kilogram from Rs. 46,900 per kilogram on Monday.
“Spot gold prices for were trading marginally up by Rs. 5 at Rs. 39,105 as weaker rupee kept the downside limited. The spot rupee was trading 10 paise weaker against the dollar during the day,” Tapan Patel, senior analyst, HDFC Securities.
Gold prices on the global market remain steady for $1,493 an ounce. Both Britain and the EU decide to meet later this week to determine whether or not Britain is headed for a so-called no-deal Brexit. US Federal Reserve will sit together for a meet later this month to decide on whether the gold rates should be cut or should it stay.
There was also a lack of details that were offered to the traders about a Phase 1 trade deal between the US and China. The US recently suspended this week’s scheduled tariff hikes on Chinese goods while existing remains on the place. The rates of gold have risen higher as fewer details were provided about the first phase of a China-US trade deal.
“Markets never like uncertainty and this is the best illustration of it,” says Shrikant S. Chouhan of Kotak Securities.
The retail demand in China and India has been affected due to the higher prices with imports plunging in September to the lowest monthly inflow in at least three years.
Many jewelers have rolled out promotional offers to lure customers to buy gold ahead of Dhanteras as gold prices take a hike in India, even higher than last year.