After some correction on the back of optimism around US-China trade deal, gold has again headed northward both in domestic as well as global markets. The hike has come for the second consecutive day wherein on the MCX, gold December contract has gained by 0.05% to Rs. 38,244 per 10gm. In Monday's session, it scaled higher by as much as 1%. Inline, silver also gained by 0.2% to Rs. 45,886 per kg.
In the international market, the fate of the precious-metal hangs as later in the week there will be a decision taken on whether or not Britain will go in for the so-called no-deal Brexit. Meanwhile, globally, spot gold has clawed back in price from long sustained levels of above $1500 per ounce to $1493 now.
Also, the key determinant will remain the direction in interest rate taken by the US Federal Reserve. Further, there remained a cautious stance as there was not much clarity in respect of the trade truce reached between the US and China.
Gold in early September peaked to a high of $1557 in the global markets, while in the domestic markets it breached the psychological level of Rs. 40000 per 10 gm for the first time.
So, in the Indian sub continued given a nearly 20% surge in the gold price this year, to give a push to their subdued jewellery demand even during festivities, the jewellers and traders in bullion have launched several promotional offers, which reportedly have increased footfall.
Also, to boost financial savings, the next tranche of SGBs will open between October 21 and October 25.