Gold price gained 0.02% in early trade today

On August 20, the price of gold is up by ₹772 per 10 gram, as of 9:00 AM. The price of 10 grams of 24 carat gold is ₹1,02,065 in Delhi. At the same time, spot gold price traded 0.02%, or 0.59 points higher at $3,316.25 per ounce in early trade today.

The rise in the gold price is because of a combination of domestic and international factors. At the domestic front, the announcement of the GST reforms by PM Narendra Modi, which is likely to lower the GST burden is a key factor. Furthermore, the recent credit rating upgrade by S&P is also positively affecting the gold demand.

Furthermore, jewellers in India have started buying physical gold to prepare for the rising demand due to Ganesh Chaturthi and the upcoming Diwali. One other factor is the weak US dollar, which is also driving the gold price in India.

On the international front, Spot gold is rising because of the meeting held between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy. The meeting, which was held for mediating peace talks between Russia and Ukraine wasn’t too fruitful. Furthermore, Volodymyr Zelenskyy also refused to meet with Russia’s President Putin in Moscow. With such geopolitical tensions around, gold is witnessing higher demand as it is considered a safe haven asset.

Today, the US Federal Reserve’s minutes will be released. Investors will be closely watching to see if there will be a rate cut. If a rate cut is announced, it is likely to increase gold demand and price as the appeal for assets that carry an interest will reduce.

Although the overall outlook for gold remains strong, it remains to be seen how the domestic and international factors further affect the gold price.

 Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.