New Delhi: Gold and silver prices fell slightly in India despite higher global rates. On MCX, gold futures fell 015% to ₹51637 for 10 grams while silver futures fell 0.13% to ₹67790 per kg.
In the previous session, gold had risen 0.52% while silver had edged down 0.2%. For the week, gold had gained slightly. Gold prices in India have remained volatile in recent weeks after hitting a record high of over ₹56,000 last month. In global markets, gold prices edged up, helped by a weaker US dollar and the resurgence of COVID-19 infections around the world. Spot gold rose 0.3% to $ 1,954.65 an ounce.
Gold traders await more clues about the Fed’s monetary policy as President Jerome Powell appears before congressional committees later this week. The dollar index fell 0.12% against its rivals, making gold more attractive to buyers holding other currencies.
Among other precious metals, silver gained 0.6% to $ 26.92 an ounce while platinum rose 1.3% to $ 939.75. Investment demand for gold has picked up after remaining weak in recent weeks. Holdings in SPDR Gold Trust, the world‘s largest gold-backed exchange-traded fund or gold ETF, rose 1.03% to 1,259.84 tonnes on Friday.
Gold is also supported by buying safe haven stocks amid growing virus risks, lack of progress on the US stimulus package and Brexit uncertainty, analysts said. A surge in coronavirus cases in many parts of the world has forced authorities to gradually introduce new restrictions to curb the spike in infections.
Back in India, jewelers are hoping the next holiday season could give a boost to demand for gold which has remained muted amid the covid crisis. Dealers offered discounts for a fifth consecutive week amid weak physical demand. “Gold may remain volatile due to the lack of clear indices and the mixed trading of stocks and the US dollar,” says Kotak Securities.
He recommends a buy-bearish strategy for gold, citing global uncertainty and the loose monetary policy of major central banks.
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