Gold continued its upward journey for the fourth consecutive day with uncertainty looming large over the US Federal Reserve’s decision on a rate hike and the ongoing trade tension between the US and China.

The price of 995 purity gold in Mumbai rose ₹135 at ₹32,985 per 10 gm against ₹32,850, while pure gold (999) was at ₹33,110 against ₹32,975 per 10 grams. Silver was at 40,075 against ₹39,975 per kg (all rates excluding GST and VAT).

In the international market gold has been rallying for the last week and has been hovering above $1,300 per ounce. The weak dollar and US-China tension over Huawei is keeping precious metals firm.

Globally, gold rose close to an eight-month peak on Wednesday, supported by a muted dollar as investors awaited the Federal Reserve’s policy decision.

Anantha Padmanabhan, Chairman, All India Gem and Jewellery Domestic Council, said the demand for gold jewellery has been weak due to sharp volatility in prices.

Gold prices in India are already on the higher side due to 10 per cent customs duty and 3 per cent GST. The higher prices has already dampened demand, he said.

This apart, consumers are trying to time the market and postponing their discretionary gold jewellery purchases as prices have gone up and down within a week’s time, he added.

Abhishek Bansal, Chairman, ABans Group said globally, investment demand for safe haven assets such as gold has increased with the uncertainty from the US-China trade tension and the Brexit issue.

Related Topics
comment COMMENT NOW