Domestic, gold prices rose by Rs. 100 per 10 grams today, bucking the trend overseas. Weakness in the rupee against the US dollar along with buying by jewellers pushed the yellow metal prices higher, say analysts.
In the global market, concerns on the US-China trade front and rising US interest rates have kept gold prices under pressure for past few weeks.
Going forward, analysts will watch outcome of the upcoming two-day meet of the Federal Reserve for direction in the dollar and gold.
Things to know about gold prices:
1. Domestic gold price: Gold prices in Delhi for 99.9 per cent and 99.5 per cent purity rallied by Rs. 100 each to Rs. 31,550 and Rs. 31,400 per 10 grams respectively at the bullion market, according to a report. Gold prices had shed Rs. 250 on Saturday.
2. Domestic silver price: Silver prices eased by Rs. 50 to Rs. 38,100 per kilogram.
3. Global gold price: Gold edged lower on Monday as the dollar held firm on news that China has cancelled trade talks with the United States. Investors were focused on Sino-US trade tensions, after China cancelled mid-level trade talks with the US. Spot gold was up 0.1 per cent at $1,198.36 by 10:47 pm, after declining as much as 1.3 per cent on Friday, reported.
4. Investors awaited details from the two-day meeting of the US central bank starting Tuesday. The Federal Reserve is widely expected to raise benchmark interest rates after conclusion of its policy meeting. That would determine the movement in the dollar going forward.
5. Gold has fallen over 12 per cent since a peak in April amid the intensifying trade disputes and as rising US interest rates diminish demand for non-interest bearing bullion. Although gold is generally considered to be a safe-haven asset, the months-long trade rift between Washington and Beijing has prompted investors to buy US dollars in the belief that the world’s largest economy has less to lose from the dispute. The dollar rose 0.1 per cent against a basket of currencies at 94.263.>