Gold, Silver prices in India on August 10: Gold prices in Indian commodity market traded near record high on Monday, tracking weakness in overseas gold, ahead of scheduled US-China trade talks. Better-than-expected US payrolls data also helped correction in dollar, leading to profit booking in the safe-haven asset. Commodity analysts said rising coronavirus cases and ongoing tensions between US and China helped the yellow metal stay in positive territory.
Gold futures on Multi Commodity Exchange were trading Rs 210 lower at Rs 54,999 per 10 gm against the previous close of Rs 54,789 per 10 gm. Gold August Futures touched an intraday high of Rs 55,080 today. Gold Futures touched an all-time high of Rs 56,191 in the previous session.
Silver September futures was trading Rs 960 higher at Rs 75,120 per kg today, after hitting a lifetime high of Rs 77,949 in Friday's session.
Retail gold rate in India
24-carat gold prices in the national capital rose to Rs 55,620 per 10 gram. Gold prices surged to Rs 57,000 mark in the national capital on Friday.
The price of 24-carat gold stood at Rs 58,710 per 10 gram in Chennai. In Mumbai, the rate was Rs 55,270 for 24-Carat gold, as per Good Returns website.
Meanwhile, experts say the price of gold will touch a new high by Diwali this year. According to a report by JP Morgan, the yellow metal could hit past the Rs 70,000 mark over the next two years. According to experts, the global economic downturn will not end right away, even after the end of the COVID-19 crisis.
Overseas, gold price steadied on Monday after hitting a record high in last week, on back of better-than-expected US payrolls data and ahead of scheduled trade talks between China and US.
Spot gold hit a record high of $2,075.2 per ounce today and last stood at $2,064. Spot gold hit a record high of $2,072.50 on Friday Meanwhile, Comex gold was trading 0.75% higher at $ 2,024 per ounce, after hitting an all-time high of 2,063 in the previous week. Spot gold was down 0.3% to $2,028.90 per ounce, while US gold futures rose 0.6% to $2,039.20.
This was on the back of bounce in the dollar, amid data showing US nonfarm payrolls increased 1.763 million in July
Silver also followed the trend and fell 1.2% to $27.96 per ounce, after hitting a seven-year high of $29.8384 per ounce last week. Silver has gained 60% so far this quarter, overseas.
Gold prices have been hitting a record high in global markets amid escalating tensions between the US and China, expectations of more stimulus measures on hold and rise in cases of coronavirus infections across the globe.
Volatile global equities have also kept demand for the risk-averse asset high. A pause on fiscal aid negotiations in Washington coupled has kept equities cautious today.
Precious metal prices have been surging to fresh record highs in domestic as well as international commodity markets, amid intensifying economic concerns due to the COVID-19 pandemic. Worldwide, there are 200 lakh confirmed cases and 7.33 lakh deaths from the coronavirus COVID-19 outbreak. In India, the number of infected cases has risen to 22 lakh, including 0.44 lakh fatalities.
Geojit Financial in its commodity report said," As long as prices stay above $2000 expect rallies to continue with next upside targets are seen at $2080/2145 levels. However, an unexpected turn below $1920 could negate the extreme bullish outlook and may see corrective selling pressure. For MCX Gold Oct futures, the brokerage targeted resistance at 55,480 and support at 54,000. For MCX Silver August future, resistance is placed at Rs 76,120/81,000, while the support is at 71,500.
On recent gold prices, Hareesh V, Head Commodity Research at Geojit Financial Services said," Rising pandemic cases and escalating US-China tensions continue to lift the safe-haven demand of gold and thus prices of the commodity. However, with the dollar gaining strength after the key US employment numbers and near-record high prices are likely to calm down major buying sentiments."
For technical outlook on London spot, he added," As long as the support of $1980 remains undisturbed, expect rallies to continue with immediate resistance seen at $2080 followed by $2280 levels later. A direct drop below $1880 could negate the outlook and take prices lower."