Gold prices were last seen at Rs 38,450 per 10 grams in the national capital on Wednesday, according to India Bullion and Jewellers' Association (IBJA). These rates are exclusive of a 3 per cent Goods and services Tax (GST) and making charges, industry body IBJA mentioned on its website. IBJA is a Mumbai-based association consisting of gold dealers, traders and jewellers. Analysts say weak rupee and rally in international gold prices led to the rise in gold rates on Wednesday.
The rupee on Wednesday depreciated by 10 paise to end at 71.81 against the dollar as US-China trade deal concerns weighed on investors.
Globally, gold prices rose to their highest in nearly two weeks on Wednesday as US Senate measures on Hong Kong posed a potential roadblock for a trade deal between the United States and China, denting appeal for riskier assets.
Spot gold was last seen 0.3 higher at $1,476.50 an ounce and US gold futures rose 0.2 per cent to $1,477.
In India, gold demand is expected to fall to its lowest level in three years in 2019, the World Gold Council (WGC) said earlier this month, as domestic prices climb to a record against a backdrop of falling earnings in rural areas. Gold demand in 2019 could drop 8 per cent from a year ago to around 700 tonnes, the lowest since 2016, said Somasundaram PR, the managing director of WGC's operations.
In a report, the WGC said gold consumption in the quarter ended September slumped by nearly a third from a year ago to 123.9 tonnes.