The gold prices in India stood still despite tumbling in the global markets to hit 2019's low owing to the improvement of the global economic outlook. The gold rates in India were recorded at Rs 31,000 for 10 grams of 22 karats and at Rs 32,000 for 10 grams of 24 karats.
In the overseas markets, Spot gold stood at $1,277.80 per ounce and U.S. gold futures were seen trading at $1,274.50 per ounce, down by 0.2 per cent.
The positive economic improvement indicators have soothed the investor's concerns surrounding the global economic outlook. As decisive results emerge from both the United States of America and China, the gold prices are slipping drastically on a regular basis.
Gold acts as a safe haven during political and economic uncertainty. Investors move their investments towards gold and ditch the stock markets to safeguard their money. The growth in the economy of the dragon country in the first quarter of 2019, defying analysts' expectations has come in as a surprise move and this has helped the Asian stock markets to surge up.
In the United States of America, the trade deficit decline to slip to an eight-month low during the month of February as imports from China fell has led to the boosting of the dragon countries economy which was hit for the first time since the 1990s.
The two countries had witnessed tit-for-tat tariffs on each other which extended almost for a year and badly dented the Chinese economy fueling concerns over global economic growth. As of now, both the countries are looking forward to reduce the tensions amidst ongoing trade talks and this has helped the yellow metal to lose its shine.
In India, the heavy prices of the precious metal have forced the consumers to postpone their purchase. The expensive prices have muted the demand for the precious metal in the local market in India. One has to wait and watch if the gold prices in the country will surge up as the auspicious day Akshaya Tritiya is around the corner.