Gold gains momentum

Gold prices in India regained some momentum today, tracking higher global rates and fresh buying by jewellers. In global markets, gold prices rose close to six-month highs on safe-haven demand. Concerns about a possible prolonged US government shutdown and global growth weighed on the dollar and equity markets, boosting the appeal of assets viewed as safer, such as gold. Spot gold rose 0,4 percent at $1,260.64 per ounce.

Some analysts remain positive on gold for 2019.

“Gold is expected to play a key role in 2019 as a safe haven given the fears of further falls in stock markets and expectation for a more dovish US Federal Reserve,” said ActivTrades chief analyst Carlo Alberto De Casa.

Lower interest rates reduce the opportunity cost of holding bullion and weigh on the dollar.

Gold, which is seen as safe investment during political and financial uncertainty, has risen about 9 percent from a 19-month low of $1,159.96 in mid-August. Gold has support at around $1,250, say analysts. — Livemint and agencies.

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