Normally, all markets (gold, stock markets and others) rise/fall in anticipation of an event. However, after the event takes place the markets actually go in the opposite direction. In anticipation of the US-China first phase deal, the precious metals were under pressure and declined even as geopolitical tensions dissipated. But, the gold price in fact rose after the signing of the deal at the White House. The fact that the gold price ended much higher at $1,554.55 per ounce than the previous close of $1,549 per ounce (London pm fixed) bears testimony to it. The trading range on the 16th of January also support the theory, it was in the $1546 to $1558 per ounce range on the 16th. However, both the precious metals were impacted by the jobless claims data (down 10,000) and better than expected US retail sales data. Moreover, the Dow touched the 29,000 for the first time ever and oil too was higher. As a result, gold shed its gains during the day and ended around $1551-52 per ounce in New York.
The domestic markets followed overseas trends as gold opened almost unchanged before closing the day at Rs.39,900 per 10 gms, a gain of Rs.87 over the previous close. The white metal gained by Rs.310 per kg during the day and closed at Rs.46,270 per kg. With the year’s first auspicious period after Sankrant, both the precious metals could expect some demand provided prices are stable. Otherwise they should follow global trend and open slightly lower today.
Gold (Rs.per 10 gms) am pm
Jan 7 40488 40537
Jan 8 41253 40851
Jan 9 40046 39881
Jan 10 39798 39760
Jan 13 39829 39797
Jan 14 38515 39634
Jan 15 39836 39813
Jan 16 39811 39900
Silver (Rs. Per kg) am pm
Jan 6 48080 47995
Jan 7 47195 47145
Jan 8 48395 47795
Jan 9 46335 46375
Jan 10 46125 46180
Jan 13 46370 46265
Jan 14 45715 45835
Jan 15 45980 45960
Jan 16 46005 46270
