New Delhi: Gold and silver prices in India today edged up amid a selloff in global equities. On MCX, October gold futures rose 0.3% to ₹50,911 per 10 gram while silver futures advanced 0.23% to ₹67,080 per kg. Gold prices had fallen for three days in a row, prior to today.
In the previous session, gold futures had declined 0.12% per 10 gram while silver had plunged about 2% or ₹1,300 per kg. Gold prices in India have corrected sharply from record highs of ₹56,200 hit on August 7th and since then prices have remained volatile.In global markets, gold prices were higher as a plunge in global equities helped lift the safe-haven demand of the yellow metal.
But a stronger US dollar capped the gains. Gold traders are awaiting the release of US non-farm payrolls data for August, due later today.Spot gold was up 0.4% at $1,937.84 per ounce. The head of the Chicago Federal Reserve on Thursday called on Congress to deliver more fiscal stimulus and signaled U.S. monetary policy would be eased further. Lower interest rates decrease the opportunity cost of holding non-yielding bullion.
Among other precious metals, silver gained 1.1% to $26.92 per ounce while platinum rose 0.6% to $894.97.The sixth tranche of sovereign gold bonds of this year, which opened for subscription on Monday, closes today. The RBI is issuing gold bonds at ₹5,117 per gram while those applying online and making payment online get a discount of ₹50 per gram.
Analysts say that sovereign gold bonds are an effective way to invest in non-physical gold if investors are looking at holding it till maturity. Gold bonds have a maturity period of eight years. Investors do not have to worry about the storage of gold as it is in a demat form while there is no GST levy which a buyer needs to pay if buying physical gold. Also, a buyer gets an annual interest payment of 2.5%.
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