New Delhi: Gold and silver prices rose sharply in India after remaining range-bound for most part of the week. Gold futures on MCX rose ₹650 or 1.3% to ₹50,817 per 10 gram while silver futures surged 4% or ₹2,500 to ₹62,955 per kg on Friday.
US gold futures jumped over 2% on Friday to $1,925 an ounce. The dollar meanwhile slid 0.7% as expectations grew for a Biden win, making gold cheaper for those holding other currencies. Low interest rates and unprecedented money printing by central banks to ease the economic blow from the coronavirus pandemic have driven a 26% rally for gold this year.
A further drop in the dollar could add more fuel to the gold rebound, say analysts. In India, the seventh tranche of sovereign gold bonds will open for subscription on Monday. The issue price for the sovereign gold bond has been fixed at ₹5,051 per gram of gold, the Reserve Bank of India (RBI) said in a statement on Friday.
“The nominal value of the bond based on the simple average closing price for gold of 999 purity of the last three business days of the week preceding the subscription period…works out to ₹5,051 per gram of gold,” the RBI said.
Investors who apply online and make payment through digital mode get a discount of ₹50 per gram. For such investors, the issue price of gold bond will be ₹5,001 per gram of gold.
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