Gold and silver prices in Indian markets have risen today against a background of stable global rates. On MCX, October gold futures rose 0.7% to regain ₹52,000 levels per 10 grams, prolonging gains until day three. MCX silver futures jumped 1.2% to ₹71,300 per kg. In the previous session, gold had risen ₹300 per 10 grams when the money had jumped ₹1800 per kg. Although gold has rebounded from recent lows, it is still falling ₹4000 summits of August 7 ₹56,200 per 10 grams.
In global markets, gold prices were almost unchanged for almost two weeks, supported by the weak US dollar. Spot gold was flat at $ 1,968.98 an ounce. The dollar index fell to a nearly two-year low at 91.81 against a basket of other currencies, making gold cheaper for holders of other currencies.
Among other precious metals, silver fell 0.2% to $ 28.17 an ounce, platinum was up 0.3% to $ 931.87 and palladium fell 0.3% to $ 2,235.64.
Gold is also supported by an increase in virus cases around the world and renewed concerns about US-China tensions. The rise in virus cases around the world has raised doubts about the sustainability of the recent economic recovery. Kotak Securities said in a note.
On the other hand, mixed ETF activity, weaker consumer demand and a continued rise in global stock markets are weighing on the price of gold, the broker said.
“Gold has rebounded sharply from recent lows, indicating buying interest in the market. But we recommend some caution as the US dollar could turn the volatile market focus from the Fed to other issues,” Kotak added.
Last week, US Federal Reserve Chairman Jerome Powell signaled that the US central bank would remain accommodative for a longer period thanks to greater tolerance for inflation, a position that has led US stocks to decline. new records and the dollar on the decline.
On Monday, Fed Vice Chairman Richard Clarida expanded on Powell’s comments on Monday by saying that the US central bank’s new policy vision is that a low unemployment rate alone does not trigger a rate hike. of interest.
A lower interest rate stimulates gold because it reduces the opportunity cost of holding unproductive bullion.