The demand for physical gold in India has remained down this week, but showed signs of improvement on Thursday, the 22nd of November 2018. The last three days, which were the first three of this week, saw a constant depreciation in the price of gold, as the metal dropped by some 200 Rs in 3 days time.
However, this depressing, declining trend has stopped today, as the metal now regained Rs 90 of the lost value by climbing back upwards. Gold rates in India increased by Rs 90 on 22nd November, and have now reached the cumulative price of Rs 32,040 during the period.
Silver prices, which had also fallen during the last three days, tracked the prices of gold to jump by some Rs 200. The day was good for silver trading, as the 200 Rs jump brought the prices around Rs 38,000 per kg in the Indian market. The prices for silver increased because of increased off take from industrial units. A wave of fresh buying from the local jewelers is responsible for propelling gold prices up, as there had been a decrease in this demand since the last 3 days.
Gold of 99.9 percent and 99.5 percent purity also advanced by Rs 90 each to reach levels of Rs 32,040 and Rs 31.890 per 10 grams, respectively.
Sovereign gold, however, maintained a steady range during the day, as it kept its grip at the rate of Rs 24,800 per 8 gram piece. The rates for sovereign gold have maintained this position for over a week now in India.
The rates for silver weekly based delivery also recovered by some Rs 302, as they reached cumulative rates of Rs 36,888 per kg. Silver coin prices, however, remained unchanged throughout the day of trading, as they maintained the price of Rs 73,000 for buying and 74,000 for selling of 100 pieces.
This increase in gold has come after three day of losses that put pressure on the market. The losses are believed to be a doing of the growing price of the Indian Rupee against the US dollar. This increase in the Rupee meant that the cost of importing gold was way less than what it was before. Thus, the prices kept decreasing across continuous days.
Dealers in India believe that this increase on Thursday is a doing of heightened demand from jewelers.
“Jewelers are now replenishing inventory as sales during Diwali were decent,” said a Mumbai-based dealer linked with a bullion importing bank.
Singapore has seen decreases in the gold prices for the country, as the country rallies from the lowered demand after Diwali season.
“Local demand has been quiet, especially after Diwali as jewelers don’t see much business and also as gold prices are on the higher side,” said Brian Lan, who is the managing director at Singapore-based dealer GoldSilver Central.