Gold, Silver prices in India on August 13: Gold price in Indian commodity market recovered from heavy losses registered yesterday and traded above Rs 51K mark, amid mild recovery in global markets.
Overseas, gold and silver prices recouped from the worst fall in seven years and traded 1% higher on Thursday's session as bleak economic data strengthened concerns over economic slowdown due to the Covid-19 pandemic. A weak dollar also made gold cheaper for holders of other currencies. The dollar index slipped 0.2% against rivals today.
Rising US-China tensions and correction in the dollar has also led to profit-booking in the safe-haven asset. The tension between the world's two largest economies escalated after the ban on Chinese apps in the US-led to Beijing imposing sanctions on 11 US officials. Now, investors are keeping an eye over the US-China key trade talks scheduled on August 15, 2020. Breakthrough in the stalled US stimulus talks will also set this trend for the commodity.
The yellow metal continued bearish momentum for the fourth session, although traded 0.50% lower or Rs 310 at Rs 51,944, after hitting an intraday high of Rs 52,365. This was against the previous close of Rs 52,254 per 10 gm. MCX gold futures trade almost Rs 4,240 lower than the lifetime high of Rs 56,191 per 10 gm, hit last Friday.
Silver September futures were trading Rs 50 lower at Rs 66,702 per kg today after they touched an intraday high of Rs 67,280 per kg. Silver Futures have hit a lifetime high of Rs 77,949 in last Friday's session.
On Wednesday, gold fell sharply by almost 3% to Rs 50,000 mark, in line with weak overseas markets that slipped over 5%, witnessing its worst day in over 7 years. News of Russia approving the world's first covid vaccine and a firm dollar had triggered profit-taking in gold and silver.
Overseas, gold and silver prices regained control today after the recent decline, on back of weak UK data that renewed economic fears.
In global markets, gold prices consolidated further above the key $1,900 level. Spot gold recouped after opening in losses and later steadied with gains around a percent at $1,936.99 per ounce. Comex gold, however, traded in red, declining 0.49% at $1,925.40 per ounce. US gold futures also eased 0.1% to $1,947.60 per ounce.
Silver gained more than $2 an ounce from low hit today.
Retail gold rate in India
24-carat gold prices in the national capital traded at Rs 54,510 per 10 gram. Price of 24-carat gold stood at Rs 54,690 per 10 gram in Chennai. In Mumbai, the rate was Rs 52,410 for 24-Carat gold, as per Good Returns website.
As per analysts, both equities and commodity markets have turned mixed as investors remained wary over the uncertainty regarding the fresh US economic relief and worsening coronavirus crisis on a global scale. Meanwhile, Russia's claim of developing a corona vaccine has also led to the recent fall in metal.
Commenting on Gold's outlook, Hareesh V, Head Commodity Research at Geojit Financial Services said," Gold lost some ground after Russia announced the world's first Covid vaccine and profit booking was seen at higher levels. A recovering US dollar and gains in equities too pressured the safe-haven asset. However, hopes of fresh economic stimulus measures and rising US-China tensions continue to offer lower-level support to the metal"
On London spot technical outlook, Geojit Financial Services said in a note, "Pullbacks are likely in the initial hours, but it is required to sustain above $1980 to continue the momentum. Else, likely for corrective selling pressure towards $1860 followed by $1780 levels for the day."
As per the brokerage, MCX Gold August, resistance is placed at 53,600 and support is at 50,450/49,200. For MCX Silver August futures, the resistance is at 70,120/72,980 and the support is placed at 60,100.
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. In India, coronavirus cases surpassed 23.95 lakh mark today, with total deaths standing at 0.47 lakh. Worldwide, there are 208 lakh confirmed cases and 7.47 lakh deaths from COVID-19 outbreak.