International gold prices on Thursday hit their six-month peak as concerns of a global economic slowdown and volatility in the equity markets boosted the metal's demand among investors. Spot gold, the international benchmark for gold price, was seen trading at $1,290.09 an ounce, the highest rate since 15 June 2018.
Weakness in the US dollar and distressed stock markets across the globe have investors flocking towards the safe haven metal for refuge. The dollar index, a measure of the American currency against six prominent currencies fell by 0.3 percent. The Japanese yen, another preferred asset at the time of economic uncertainties surged against the US dollar.
While the weakness in the dollar should have made gold prices in India cheaper, they are presently reflective of international rates. The precious metal is priced at Rs 31,250 per 10 grams of 22 carats in New Delhi on Thursday, that is, Rs 400 higher than the previous day. In Mumbai, 10 grams of 22 carats was priced at Rs 31,280, Rs 580 higher than Wednesday.
To add to the prevailing investor concerns, the meeting between US Congressional leaders and their president Donald Trump did not settle with an agreement to end the partial government shutdown, that is now in its 12th day. The precious metal is highly sensitive to the movement and outlook of the dollar index.