Gold Price In India: Domestic gold and silver prices jumped on Friday tracking global precious metal rates as the dollar retreated to a near three-week low and increased bets for fresh US stimulus pushed investors to bullion as a hedge against likely inflation. Multi Commodity Exchange (MCX) gold futures (due for expiry on December 5) gained by Rs 574 – or 1.14 per cent – to settle at Rs 50,749, and silver futures (December 4) climbed to Rs 62,079 for the day, up Rs 1,560 (2.58 per cent) from their previous close. (Also Read: Is Silver The New Gold?)
The gold and silver contracts surged to as high as Rs 50,880 and Rs 62,381 during the session respectively.
The sharp gains were in tandem with global benchmarks. Comes gold jumped 2.15 per cent to touch $1,935.80 per ounce at Friday’s strongest level, and silver soared to as high as $24.97 per ounce.
Analysts say weakness in the dollar made the precious metals cheaper for investors dealing in other currencies. The dollar index – which measures the greenback against six currencies – weakened as much as 0.53 per cent during the session.
The rupee edged higher to end at 73.13 against the US currency for the day.
Domestic spot gold settled at Rs 50,878 per 10 grams on Friday, and silver at Rs 61,106 per kilogram, excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
— IBJA (@IBJA1919) October 9, 2020
Gold has been one of the most consistent gainers through the six months of coronavirus pandemic-led turmoil in financial markets. (Also Read: Gold “Dream Run” May Continue: Analysts)
What Analysts Say
“Gold has witnessed a mixed trade in last few sessions but has largely been bound in a range of $1,880-1,930/oz amid lack of clear cues. Gold edged up amid weakness in the dollar index, however improved risk sentiment has limited upside while ETF (exchange traded fund) investors remain on sidelines,” said Ravindra Rao, VP-head commodity research, Kotak Securities.
“Although choppy trade in gold may continue buying interest might emerge at lower levels as concerns about US economy may keep pressure on the dollar,” he added.