New Delhi: Gold is off to a good start in 2019. Gold rates on Wednesday edged 30 higher to 32,500 per 10 gram at the bullion market, extending their Tuesday’s gain. On Tuesday, gold prices had gained 200. Higher global prices and some uptick in demand from local jewellers helped support gold price. In Delhi, prices of gold of 99.9% and 99.5% purity gained 30 each to 32,500 per 10 gram and 32,350 per 10 gram, respectively. Sovereign gold however remained unchanged at 25,200 per piece of 8 gram.

Silver ready advanced 100 to 39,350 per kg and weekly-based delivery saw a mild rise of 23 to 38,748 per kg. Silver coins, however, remained unchanged at 76,000 for buying and 77,000 for selling of 100 pieces.

Gold had a good year in 2018, rising 6% for the year, primarily driven by a weakness in the rupee. A fall in the value of the rupee against the dollar makes gold imports costlier.

In global markets, gold prices moved to over six-month highs as the as the US dollar fell. Weak global equity market after disappointing data from China cemented fears of a slowdown in global economic growth. Spot gold was up 0.28% at $1,285 an ounce. The dollar index, which tracks the greenback against a basket of major currencies, was hovering near a two-month low hit in the previous session. A softer dollar makes the greenback denominated bullion cheaper for investors holding other currencies.

“The global economy has entered into an uncharted territory considering the fact that the Chinese data was worse than expected," said Kunal Shah, head of research at Nirmal Bang Commodities. “With uncertainties on global economy and geopolitical concerns, it’s just a matter of time gold is going to shoot up."

The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) for December fell to 49.7 from 50.2 in November, marking the first contraction since May 2017, and followed a raft of soft trade data from the Asian region.

Gold traders will be looking forward to views from Federal Reserve Chairman Jerome Powell on the US economic outlook and hints about rate hikes in 2019 when he participates in a joint discussion with former Fed chairs Janet Yellen and Ben Bernanke on Friday.

With Agency Inputs

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