After a two day losing streak in India, gold prices within the country rose sharply on the 15th of November. After a recent plunge, the rise in the gold rates for the day is expected to be influenced by the increased buying pattern of the jewelers and the increase in global prices.
Gold rates in India jumped by over Rs. 350 to reach the price of Rs. 32,250 per 10 gram. The increase in gold rates has come after a period of two days, during which the rates had fallen. The previous decrease has been put on the diminishing jeweler demand with the local festive season just passing by. However, jewelers have come back strong with increased demand, as India is still going through its coveted wedding season.
Following the trend set by gold, silver rates for today also increased by some 450 Rs to reach the amount of Rs. 37,000 per kg. This increase in silver rates is said to be backed by the increased off take of industrial units.
The prices of gold 99.9 percent and gold 99.5 percent in Delhi recovered by some Rs 350 each to reach the amount of Rs 32,250 and 32,100 per 10 gram. The gold rates in India had previously gone down by 250 in the last two days.
Sovereign gold prices in India held steady at Rs 24,800 per 8 gram piece. Silver coins remained steady as well at the previous rate of Rs 73,000 for buying and Rs 74,000 for the selling of some 100 pieces.
Traders believe that the rates for gold have gone up due to the fluctuations in the rates of the dollar. The political environment is abuzz with the broken Brexit deal, and investors are turning towards gold as a safe haven investment to invest their money in.
Meanwhile in the global market, gold prices steadied after a day of gain yesterday. The global market fell earlier in the day, as the dollar rallied up and made unprecedented gains, in the face of political turmoil in Europe, after a failing Brexit deal in the UK.
Investors say that the uncertainty within the British parliament would offer gold prices some support in the immediate future.
“We have seen some resignations from the British cabinet … so that uncertainty is offering some support to gold prices in the immediate term,” said ING analyst Warren Patterson. He further added, “We will find very good support at $1,200 but will struggle to break up above $1,250 in the near term.”
“If prices manage to remain above $1,210 there will be space for further recoveries, while another fall below the psychological threshold of $1,200 would represent a negative signal,” said ActivTrades chief analyst Carlo Alberto De Casa in a note yesterday.
Meanwhile in the local market, experts also talked about the coming talks between China and the United States.
“If a good trade deal comes out of the upcoming talks (between China and the United States) it could be positive for gold,” said Renisha Chainani, who is the head of commodity and currency research at Monarch Networth Capital.