Business Today
Loading...

Gold price rises after two days; silver rates at Rs 68,500

Gold, Silver prices today: On the Multi-Commodity Exchange, gold September Futures traded 0.40% or Rs 186 higher at Rs 52,337, after hitting an intraday high of Rs 52,409 against the previous close of Rs 52,151 per 10 gm

Rupa Burman Roy | August 21, 2020 | Updated 12:38 IST
Gold price rises after two days; silver rates at Rs 68,500
Gold, Silver prices in India on August 21: Prices of the bullion metal fell upto 4.5% last week after dollar gained some ground and US-China tensions continued to weigh on investor sentiment

Gold, Silver prices in India on August 21: Gold prices in India reversed from two days of straight losses and gained on Friday amid a mild recovery in global markets. This was on the back of weak dollar that fell after the US labour market looked weak.

Precious metals bounced back to gains overseas after US jobless claims unexpectedly topped one million and FOMC minutes hinted at concerns over economic recovery. An impasse over the US coronavirus stimulus bill also led investors rush to the safe-haven asset today.

MCX

On the Multi-Commodity Exchange, gold September Futures traded 0.40% or Rs 186 higher at Rs 52,337, after hitting an intraday high of Rs 52,409 against the previous close of Rs 52,151 per 10 gm. MCX gold futures currently trade almost Rs 3,850 lower than the lifetime high of Rs 56,191 per 10 gm, hit on August 7.

On MCX, the yellow metal has risen 41.5% to the life-time high since the beginning of the year amid concerns over rising coronavirus cases around the globe. Bullion that was trading at Rs 39,000 on December 31, 2019, recently hit a lifetime high of Rs 56,191 per 10 gm on August 7, 2020.

Similarly, Silver September futures were trading Rs 1,087 higher at Rs 68,682 per kg today after they touched an intraday high of Rs 68,900 per kg. Silver Futures hit a lifetime high of Rs 77,949 on August 7.

Gold vs Reliance Industries stock: Which has given better returns in 2020 so far?

Global markets

After the recent fall, gold gained momentum on Friday amid weak dollar after downbeat US jobless claims data heightened fears of slower recovery from the pandemic-induced economic crisis. In the international spot market, where gold hovered above key support of $1930 a troy ounce, silver retreated marginally with a gain of more than half a percent.

Spot gold was up 0.4% at $1,949.83 per ounce, while U.S. gold futures rose 0.4% to $1,953.80. Comex gold was rising 0.50% higher at $1,945 per ounce. Silver gained 0.3% to $27.30 per ounce. Where gold has risen 0.2% so far this week, silver has risen 3.4%.

Prices of the bullion metal fell upto 4.5% last week after dollar gained some ground and US-China tensions continued to weigh on investor sentiment. In the latest update, the Trump administration has declined to acknowledge any plans to meet China on talks over the Phase 1 trade deal. This was after commerce ministry in Beijing said bilateral talks would be held in the coming days.

Gold prices may hit Rs 65,000 level by Diwali; silver likely to touch Rs 90,000-mark

Retail gold rate in India

24-carat gold prices in the national capital traded at Rs 55,680 per 10 gram. Price of 24-carat gold stood at Rs 55,470 per 10 gram in Chennai. In Mumbai, the rate for 24-Carat gold stood at Rs 52,000 as per Good Returns website.

Gold price falls for second day; silver rates at Rs 67,500

Valuation

As per Geojit Financial Services, immediate support of $1920 needs to be cleared for the continuation of selling pressure in the counter. Else, a bounce-back is expected but unlikely for major rallies. However, consistent trades above $1980 would continue bullish momentum.

For MCX Gold August, resistance is placed at 52,600/54,000 and support is at 51,400. For MCX Silver August futures, the resistance is at 71,500 and the support is placed at 65,100/60,800.

Commenting on Gold's outlook, Hareesh V, Head Commodity Research at Geojit Financial Services said,"Rising equity market and optimism over successful COVID vaccine are likely to trigger higher level profit booking in gold. However, the broad bullish outlook remains intact due to uncertainties surrounding the global economic recovery, hopes of fresh stimulus measures from central banks and a weak US dollar."

On London spot technical outlook, he added,"A break below the stiff support of $1920 is required to continue liquidation pressure for the day. Else, we are likely to see recovery upticks but it needs to break above $2025 to stabilise the momentum."

Investor interest in gold has risen ever since central banks globally embarked on unprecedented financial stimulus to combat the Covid-19 pandemic related economic headwinds. This has caused investors to use the bullion metal as a hedge against inflation and currency debasement.

Worldwide, there were 228 lakh confirmed cases and 7.97 lakh deaths from COVID-19 outbreak. Meanwhile, the death toll in India touched 54,945 and total coronavirus cases stood at 29.05 lakh as of Friday.

Share Market News Live: Sensex rises 250 points, Nifty at 11,409; NTPC, ONGC, BPCL, PowerGrid top gainers

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close