Gold and silver prices fell slightly today in Indian markets amid muted global signals and a strong rupee. On MCX, October gold futures fell 0.35% to ₹51320 for 10 grams while silver futures fell 1.3% or ₹900 to ₹70,000 per kg. In the previous session, gold futures were down 0.44% while silver futures were up 0.4%. Gold prices in India have been volatile since prices hit a record high of ₹56,200 to August 7.
In global markets, gold prices edged up today, supported by a weaker US dollar. But the gains were moderate, as strong US manufacturing data raised global risk sentiment. Spot gold rose 0.1% to $ 1,971.07 an ounce, while US gold futures were flat at $ 1,978.90.
Among other precious metals, silver gained 0.3% to $ 28.25 an ounce while platinum rose 0.3% to $ 943.63.
“Gold has rebounded strongly after taking support near the $ 1900 / oz level, but momentum is weakening and we could see choppy trading if there are no new triggers. you have to wait for a corrective decline before creating new long positions, ”Kotak Securities said in a note.
Weighing in on the price of gold is continued strength in the US and global equity markets, sluggish ETF activity and weaker consumer demand, the broker added.
The dollar index was flat for almost two years, with investors betting that interest rates in the United States would stay low for longer under the new monetary policy framework outlined by the Fed chief last week.
Low interest rates reduce the opportunity cost of holding unproductive gold, while a weak dollar makes the yellow metal cheaper for holders of another currency.
Data released Tuesday showed manufacturing activity in the United States accelerated to an almost two-year high in August amid a surge in new orders.
Gold prices have risen by around 30% so far this year, as governments and central banks around the world have launched unprecedented stimulus measures to support economies amid the coronavirus pandemic .
White House Chief of Staff Mark Meadows said Senate Republicans would be likely to take their COVID-19 relief bill next week offering $ 500 billion in additional federal assistance.
In India, the last tranche of sovereign gold bonds is open for subscription, which will close on September 4. The issue price was set at 5,117 per gram. Those who apply online and make online payments get a discount of ₹50 per gram. The minimum authorized investment is 1 gram of gold. (With contributions from the agency)