The gold markets went back to its mundane existence as geopolitical tensions eased out in the middle-east. Moreover, the move by the US Congress to curb the President’s powers to wage war also helped in bringing normalcy in the volatile markets. The international gold markets looked at US data numbers and the focus shifting to next week’s signing of the first phase of the US-China trade deal.
Gold declined initially in London to $1548.85 per ounce in the morning fix. However, after Trump imposed fresh sanctions on Iran and US farm employment data numbers failed to meet expectations, it ended the day at $1,553.6 per ounce. But, the gold price moved up even further after the US markets opened and ended in New York in the $1,562-63 per ounce region. The gold price during the day was in the $1,546-$1563 per ounce range.
In the domestic market, the gold price in Mumbai actually opened slightly lower at Rs.39798 per 10 gms and ended even lower at Rs.39760 per 10 gms. Gold lost over Rs.1000 per 10 gms from its peak of Rs.40,851 per 10 gms on the 8 th of January, even the rupee strengthened from around Rs.72 to a dollar to around Rs.70.96. As the gold price is released around 5 pm IST in Mumbai, the higher price in New York would be reflected only after the market opens again on Monday. However, that would depend on the strength of the Indian rupee and what happens over the weekend in the world.
Maker Sankrant would herald the beginning of first auspicious period for gold in 2020. After a tumultuous start to the year, gold could be run on fundamentals once again.
Gold (Rs.per 10 gms) am pm
Jan 7 40488 40537
Jan 8 41253 40851
Jan 9 40046 39881
Jan 10 39798 39760
Here’s how much will your Rs 10,000 be worth in a year if invested in Equity, NIFTY or Gold?
Disclaimer: This is not a guide for speculators.
