Gold in today's trade has surged after falling in yesterday's trade even as some of the economic concerns such as the probable rate hike by the US Fed in the month of September as well as the US-China trade tensions are well being discounted in its pricing.
For some time now, gold as a safe haven has lost its appeal as the yellow-metal has failed to provide stupendous returns to investors in comparison to other investment instruments such as equity and other asset classes.
The metal is now being offloaded at even small price hikes and it is as per reports suggested that no longer investors are keen to take positions in the precious metal at a price above $1200 which is seen as a crucial support level.
In Tuesday's session, spot gold in the international markets hit a price of $1214.28, highest since August 10. This was largely then taken aback as after the US and Mexico stuck a trade deal and there was seen an increase in US treasury rates.
In today's trade Spot gold at 0329 GMT was trading at $1204.64.
The dollar is being taken position into by investors as the current politico-crisis situation is playing good for the green-back. However, due to upcoming deadline for the US-China trade dispute, dollar is expected to trade in a narrow range. And also, as long as the crisis pertaining to trade situation is likely to persist, the sentiment in gold will be down.
Nonetheless, gold in the domestic market has also been surging taking cues from the international pricing of gold in dollar currency as well as demand driven price increase just ahead of the festive season. Notably, 24K gold price has remain constant at Rs. 32010 for 10 gm of gold.