Gold price up today in early trade

On August 19, the price of gold is up by ₹113/ 10 gram, as of 9:00 AM. The price of 10 grams of 24 carat gold is ₹1,01,343 in Delhi. At the same time, spot gold price in international market is up by 0.24%, or 8.12 points higher at $3,341.02 per ounce.

The rise in Indian gold price is a result of the positive sentiments of Indian investors regarding investment in physical gold. One key factor is the GST reforms announced by PM Narendra Modi which are likely to reduce the GST burden significantly. When implemented, this will leave Indian households with more disposable income, due to which gold is witnessing a higher demand.

Spot gold is gaining because of the recently held meeting between Russia and the US on Friday. Furthermore, US President Donald Trump is holding a meeting with the Ukrainian President right now at the White House. The meetings are around peace talks between the nations, which may result in the discontinuation of the Russia-Ukraine war. While the discussions are at an early stage, the possibility that it may go either way is supporting moderate demand for gold.

The US Federal Reserve’s minutes, which will be released this Wednesday, is also supporting the gold price. 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.

Analysts believe that the overall outlook for gold remains strong for the rest of the year. The upcoming festive season is a major factor which is going to support the gold price. However, short-term fluctuations are likely in the near future. It remains to be seen how the US-Ukraine meeting pans out, along with the result of the US Fed minutes tomorrow.

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