The yellow metal has lost remarkably from its record gains of over Rs. 40,000 per 10 gm reached late in August. In the international market, gold's appeal is losing some lustre as there were calls made by the US that the deal with China on trade can be reached sooner than expected, which rendered the appeal of the metal lower.
Nonetheless at the same time the impeachment inquiry against the US President Donald Trump who has been alleged to seek foreign help to smear Democratic rival Joe Biden ahead of next year's election again aggravated geo-political uncertainty in the world's most developed country.
The losses thus remained capped in the precious metal which showed some resilience. Also dollar was seen to be at a high as investors took to the safe appeal of the currency in such distressful times. On Thursday, President Trump also threatened that equities world over could be wobbly and economic gains would be shed if impeachment inquiry proceeds. And any losses for the equity have a positive effect on the yellow metal.
So, despite the downside since the 6-year high price reached of $1550 per ounce in the global markets, it remains well supported owing to various favourable factors.
Back home, the yellow metal has retreated on the back of strength in the home currency against the dollar n the afternoon session. The dollar index stood steady and showed its sharpest rally in 3 months time as sentiments turned positive on a likely US-trade deal. Rupee gained momentum after oil prices dropped 1% in the global market.
The decline in yellow metal price by as much as Rs. 2000 from their highest price will usher well for jewellers and traders just ahead of the festive season which is set to begin with Navratras starting Sunday.
In the spot market, gold of 24K and 22K is priced at Rs. 38,100 and Rs. 36,900/ 10gm, respectively in the Delhi region.