Gold prices after inching lower in the previous session, climbed today (May 29, 2020) as escalating tensions weighed on gold price. In the futures market, gold contract for June delivery opened at 46,523 and traded higher by 0.31% at Rs. 46547 per 10 gm.
Also, India’s GDP due later today will also set the course for gold price.
It is likely that India will register its slowest growth in the March ended quarter in 2 years. As per a Reuters poll, the annual GDP for March quarter is anticipated at 2.1% in comparison to 4.7% in the previous quarter ended December.
International gold prices
In the international market, on rising US-China spat aggravated which pushed the safe-haven appeal of the precious yellow metal and hence its prices. In the spot market, gold was priced at $1719.63 per ounce, while futures surged 0.4% to $1,734.60.
China is known to go ahead with implementing a security law over Hong Kong that is likely to impact the city’s status of a financial hub. Further, the US President who committed a tough course will convene a news conference today on China.
Also, a reuters report pointed out that various stock markets across the world will see the worst performance in a decade’s time.
What’s making gold to trade mixed?
On the lower side, factors such as heightening tensions between the US and China over the Hong Kong law and unleashing of stimulus measures from central banks is supporting rupee.
Nonetheless, the gains remain capped on account of some hopes around the vaccine development hopes as also economic recovery as economies open up after being closed due to coronavirus led lockdown.
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