Gold prices in line with the emerging market currencies rout, triggered by Turkey's Lira and China's economic woes, reduced to its over 19-month low price levels. This is mainly due to the firm dollar which is seen strengthening against a basket of emerging market currencies for quite some time now and has in fact stood close to its recent peak.
In Thursday's trading session, gold prices declined by over 1% to hit a low. As of 0055 GMT, the spot gold reduced in price by 0.8% to $1,164.71 an ounce. Notably, in the previous session, gold price registered a higher decline of 1.2% at $1,159.96, its lowest price since January 2017.
Also, US gold futures were trading lower by 1.1% at $1,172.7 an ounce.
In the previous session, the dollar index, which measures the strength of dollar against a basket of six major currencies reached an over 13-month high level of 96.984. However, in trade today it again surged by 0.1% at 96.756.
On Wednesday, the US dismisses any move to remove steel tariffs which caused currency rout in the Turkey even in the circumstance if Ankara frees a U.S. pastor.
Meanwhile, in the domestic markets, the yellow metal with pricing in the US dollar, was trading with gains. Both 22K and 24K gold was priced higher by Rs. 130 and Rs. 80, respectively for 10gm of gold. The retail selling price of 22K and 24K gold today is Rs. 29,150 and Rs. 30,100, respectively.