India gold prices see sharp fall in a weak global market

By

Isabelle Crossley

Published
Jun 26, 2019

Indian gold prices fell considerably on June 26 as the global market experienced challenging conditions.

The Indian independent commodity exchange Multi Commodity Exchange of India Ltd valued gold futures for August 2019 at Rs 34,322 ($496.13) on June 26, down 0.7 percent from from almost Rs 35,000 on June 25. MCX also valued gold futures for October had also decreased by 0.7 percent to Rs 34,500. This fall follows the price increase on Tuesday which proved to be only fleeting.

The global market also saw gold prices drop by over 1 percent on June 26, Mint reported, as US Federal Reserve officials said aggressive rate cuts were unlikely. The global gold market had also seen a recent rise in prices after years of slump.

Some factors affecting the gold prices include the ongoing trade war between China and the US. Leaders of the two nations, Xi Jinping and Donald Trump, are scheduled to meet on June 29 at the G20 Summit in Japan which many businesses hope will lead to progress on trade talks.

India is the world’s second largest gold consumer after China so global gold prices affect the country’s economy considerably. A drop in the price of gold can stimulate demand for the precious metal and so price fluctuations can be a mixed blessing for jewellers.