Domestic Gold Futures Gain To Rs 51,720, Silver Edges Lower To Rs 68,000
Gold, Silver Rates: MCX gold and silver futures settled at Rs 51,720 and Rs 68,002 on Friday
Gold, Silver Price In India: Domestic gold futures rose half a per cent on Friday tracking global spot prices of the yellow metal, amid a drop in global equities on remerging concerns about the coronavirus pandemic. Multi Commodity Exchange (MCX) gold futures (due for settlement on October 5) gained by Rs 267 to close at Rs 51,720, having risen to as high as Rs 51,849 during the session. Silver futures (December 4) edged lower by Rs 140 to end a volatile session at Rs 68,002. (Track Gold Futures Here)
In the international spot market, gold moved higher amid weakness across global share markets, as investors sought direction after this week's US central bank meeting and a jump in coronavirus cases in Europe rattled sentiment. Typically, precious metal prices share an inverse relationship with capital markets, wherein any improvement in the risk appetite boosts their appeal as safe havens.
On Wednesday, the Federal Reserve vowed to keep interest rates near zero until inflation is on track to overshoot the US central bank's 2 per cent target. However, the new guidance also marked the start of a vigorous monetary policy debate as the Fed shifts from a crisis-era focus on keeping markets afloat during the coronavirus pandemic to managing what it now sees as a gradual recovery.
Comex spot gold rose 0.63 per cent to end at $1,962.10 per ounce, and silver edged 0.11 per cent higher to settle at $27.13 per ounce on Friday. (Also Read: Is Silver The New Gold?)
The dollar index - which measures the American currency against six peers - declined 0.05 per cent, helping the rupee appreciate 0.27 per cent against the greenback to close at 73.45.
Back home, spot gold closed at Rs 51,620 per 10 grams on Friday, and silver at Rs 65,905 per kilogram, excluding GST, according to Mumbai-based India Bullion and Jewellers Association, an industry body.
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
"Despite mixed trade in last few days, gold has continued to trade in a broad range of $1,900-2,000/oz amid lack of fresh cues. The key event for this week was the central bank meetings, and while their general commitment towards continuing with accommodative monetary policy is positive for gold, lack of any fresh action dampened market sentiment," said Ravindra Rao, VP-head commodity research, Kotak Securities.
"Gold may remain choppy amid lack of clear cues and mixed trade in equities and US dollar however buying might re-merge at lower levels amid global uncertainty and loose monetary policy stance of major central banks," he said.