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Gold prices rise over 1% on global cues

Gold prices rise over 1% on global cues

Gold prices rise over 1% on global cues
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By CNBC-TV18 Sept 16, 2019 11:40:59 AM IST (Published)

Gold prices resume their upward trend on Monday after falling for several sessions in the last two week as attacks on Saudi Arabia's oil facilities have sent investors looking for safe-haven assets.

Gold prices resume their upward trend on Monday after falling for several sessions in the last two week as attacks on Saudi Arabia's oil facilities have sent investors looking for safe-haven assets. Moreover, the weak Indian rupee has also supported gold prices. October gold futures on MCX were trading 1.3 pecent up at Rs 38,015 per 10 gram, but still down from the record high of Rs 39,885. Gold prices on Friday rose by Rs 70 to Rs 38,695 per 10 gram in Delhi, reported PTI.

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Global gold prices jumped 1 percent as an attack on Saudi Arabia's oil facilities dented risk appetite. Spot gold rate was up 1 percent at $1,503.52 per ounce, as of 9.40 AM. Prices had dipped 1.2 percent in the previous week on hopes that an end to the US-China trade tiff could be near. US gold futures rose 0.8 percent to $1,511.20 per ounce.
The Indian rupee fell against the US dollar on Monday, snapping a seven-day rally, as rising oil prices raised trade deficit concerns. The rupee opened at 71.57 per US dollar, down 65 paise from its previous close of 70.92.
Gold demand in Asia picked up slightly last week on the back of a decline in gold prices. However, in India, the second-largest gold consumer, the lower gold prices still failed to boost retail purchases even as gold discounts widened to the highest level in over three years.
Dealers were offering a discount of up to $51 an ounce over official domestic prices this week, the highest since August 2016. Last week they were offering discounts of up to $45. The domestic price includes a 12.5 percent import tax and 3 percent sales tax, according to Reuters.
Weak retail demand has discouraged jewellers from stocking up, a dealer at a private bullion-importing bank in Mumbai said. "If prices correct below 37,000 rupees, jewellers could start making purchases for the festive season," the dealer said.
(With inputs from agencies)
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