Gold held steady on Monday, benefitting from the precious metal’s status as a safe bet in times of turmoil.
The yellow metal’s prices rose by Rs 150 to a fresh three-month high of Rs 27,575 per 10 grams in Mumbai, on persistent buying by jewellers to meet seasonal demand.
“There has been an increased demand in the last few days, which is reflecting on prices. There is interest particularly in physical gold,” said Kishore Narne, head of commodity and currency at Motilal Oswal.
In global markets, gold stayed close to its highest level in almost seven weeks, as worries over a slowing Chinese economy pushed investors away from risky assets.
“Certainly gold is finding itself a bit of a safe-haven bid with all the volatility that’s going on,” said Victor Thianpiriya, commodity strategist at ANZ Bank.
Spot gold was down 0.6% at $1,153.20 an ounce in the London market, coming off the day’s peak of $1,165.11. The yellow metal rose to as much as $1,168.40 on Friday, its highest since July 7.