Gold had a mixed day of trading on Tuesday as its morning losses later reverted into gains by the end of the day. The price of gold in the global market moved back over $1,200 an ounce, after a poor day of trading on Monday 12th November, 2018 had pushed them under $1,200.
The gold price gains in the second half of the day occurred after slight retreats in the dollar which had followed a rally that was backed by rising U.S. interest rates. Spot gold in the market edged up by some 0.2 percent to be marked at $1,202.90 per ounce at the end of trading on 13th November. This gain was seen after the market had fallen to its lowest since October 11, at $1,195.9 during the early hours of the day. U.S gold futures however remained steady during the day at $1,203.7 per ounce.
Gold bullion was also on track to snap a losing streak that had stretched past 7 sessions, due to limited buying from price-sensitive customers.
“The weaker dollar is supporting gold, and a lot of people are anxious to purchase the metal below $1, 200,” said Phil Streible, who is a senior commodities strategist at RJO Futures. He further mentioned, “There is widespread liquidation in some of the markets, including energy. Investors may be shifting money around through new asset allocation by selling those positions and buying gold futures.”
“There has been a bit of physical demand around the $1,200 levels,” mentioned David Meger, who is the director of metals trading at High Ridge Futures. He further added, “The continued weight on the gold market of late has been due to the slowly rising interest rate environment.”
On the other hand, holdings for the world’s biggest gold-backed ETF SPDR Gold Trust rose by over 0.9 percent to reach 762.00 tonnes on Monday. These holdings had hit their lowest in 2 years, during last month, after declining over the summer.
Gold Prices Fall for Second Day in India
Meanwhile, in India, gold prices dropped for the second day on the trot to mark a poor session of trading on 14th November, 2018. This fall in prices within the Indian market is believed to be influenced by the lack of demand by the local jewelers, and the falling prices in the global market as well. Gold prices in the country dipped by around Rs. 150 reach a figure of Rs. 31,900 per 10 gram of gold. Silver prices were stable throughout the day at Rs. 37, 450 per kg.
Gold sovereigns, however, continue to trade at 24,800 per each piece of 8 gram. Silver coins, felt the impact of the falling prices and fell by some Rs 1,000 to reach Rs 74,000 for selling and Rs 73,000 for buying 100 pieces.
The gold prices in the Indian market have risen to six year highs at Rs 33,000 after the falling value of the Rupee against the Dollar.