Mumbai, October 14: Gold rates continue to rise ahead of Diwali and Dhanteras. The price of 22-carat 10-gram gold in Mumbai was Rs 37,320, up by Rs 10 as compared to its previous closing. The price of 24-carat 10-gram gold, on the other hand, was at Rs 38,320, up by Rs 10 on Monday, according to GoodReturns report.
A partial trade agreement between the US and China helped gold open with a negative bias in the Indian commodity market on Monday. However, an adverse report by World Bank on the economic slowdown of the country furthered dampened the buying momentum. World Bank report on Sunday estimated India's economic growth in the current fiscal at 6 per cent, lower than the Reserve Bank of India's latest revised outlook of 6.1 per cent. World Bank Cuts India's Economic Growth Estimate at 6% for FY 2019-20.
This comes as another bleak outlook for the economy, after recent downward revision of GDP estimate by Asian Development Bank (ADB) and Organisation of Economic Co-operation and Development (OECD) apart from the RBI and a couple of rating agencies.
In the international markets, the gold rates extended their fall into a third session as optimism around the US-China trade talks increased the risk appetite, while a slight uptick in the dollar weighed on the prices.
Other than the upcoming marriage season which is about to start, buying gold during Dhanteras is part of the tradition among many till today. However, due to the rise in the rates, many people are not being able to buy this time. They are waiting for the rates to fall and in case it doesn't, they will have to give it a miss this year
(With additional inputs from agencies)