Gold Prices in the Indian Market Soar on Monday, as Silver Rises

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The gold rate today in India increased as it ended a four-day losing streak. Gold rates in the Indian market had suffered losses during the last four days on a trot, as the Indian rupee made gains in the international market.

However, the day of trading on Monday, 3rd December saw this phenomenon being reversed, as Gold made solid gains of Rs 390 during the day. The rates of gold have shot up to Rs 31,850 per piece of 10 gram, after 4 consecutive days of losses. The rates are believed to have had increased because of an increased demand from jewelers and high global prices in the market.

Gold prices in India had lost almost Rs 400 during the past days of the slump. Silver, which has tracked gold for a long period now, also increased by a massive margin of Rs 800. This increase is believed to be a direct result of increased demand from coin makers and other industrial units. Gold of 99.9 percent and 99.5 percent purity saw an increase of Rs 390 each to advance to rates of 31,850 and 31,700 per piece of 10 gram respective. Sovereign gold, however, maintained its steadiness at the rate of Rs 24,700 per 8 gram piece.

Silver ready prices reacted to increased industrial off take as they increased by Rs 800. However, the prices for Silver weekly-based delivery declined by Rs 602 to reach Rs 35,749 per kg. Silver coins have remained steady at their previous cost, as they maintained the rate of Rs 72,000 for the buying and Rs 73,000 for the selling of some 100 pieces.

Gold rates in the global market jumped up high, as the dollar weakened after the agreement made between the United States and China at the G20. The United States and China decided upon a temporary truce to their trade war on tariffs. The meeting in Argentina was closely followed by many intrigued viewers, because of the talks between both these countries. Gold immediately reacted to the fall in the dollar, as it reached a one-month high on Monday. The dollar has weakened down, leading to speculations that investors are going for riskier assets in their portfolio.

Gold prices rose drastically today, as the global market saw a day of increased trading. Spot gold prices in the market gained by some 0.7 percent and reached the level of $1,230.81, while the US gold futures gained 0.9 percent to reach levels of $1,236.50.

The rupee could, however, not maintain its gains against the dollar, as it fell today. The rupee tracked a surge in the prices for global crude oil, as it weakened past the 70 dollars a rupee level to close the day at Rs 70.46. It is also believed that a fall in the value of the rupee in the international markets, makes importing gold expensive and increases prices.