Gold, Silver prices in India on August 31: Gold price in Indian commodity markets gained for the second consecutive session on Monday tracking positive cues in the international market. Prices of gold and silver gained more than 1.50% in the international market backed by a weak dollar. The US Federal Reserve's new policy commentary for more inflation tolerance also supported sentiment for bullion.
Investors were optimistic on the US Federal Reserve's new strategy to adopt an average inflation target and restore full employment in United States.
Globally, rising coronavirus cases also helped the commodity to cap losses. Worldwide, there were 253 lakh confirmed cases and 8.50 lakh deaths from COVID-19 outbreak. Meanwhile, India reported 78,512 new COVID-19 infections, taking the death toll to 64,617 and total coronavirus cases to 36.21 lakh as of Monday.
On the Multi-Commodity Exchange, Gold October Futures rose by Rs 215 at Rs 51,671, after hitting an intraday high of Rs 51,744 against the previous close of Rs 50,540 per 10 gm. MCX gold futures currently trade almost Rs 4,447 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 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 hit a lifetime high of Rs 56,191 per 10 gm on August 7, 2020.
On a similar note, Silver September Futures gained Rs 1,289 higher at Rs 70,126 per kg today after they touched an intraday high of Rs 70,474 per kg. Silver Futures hit a lifetime high of Rs 77,949 on August 7.
Gold and silver rates climbed to their highest level in nearly two weeks on Monday as the dollar fell after US Federal Reserve's new policy framework suggested that interest rates would remain low for some time. The dollar index fell to a two-year low against the basket of Asian currencies.
US Federal Reserve's announcement of a change in policy framework and a new approach to inflation raised the expectation the central bank would keep interest rates ultra-low to support the economy as long as it's needed.
In the international spot market, spot gold was up 0.3% at $1,969.98 per ounce, after hitting $1,976, its highest since August 19. While Comex gold gained 0.14% at $1,967 per ounce, US gold futures rose 0.2% to $1,978.70. Silver jumped 1.6% to $27.94 per ounce.
Overall, gold has risen 30% since the beginning of the year. However, the bullion metal fell 0.2% this month.
Retail gold rate in India
24-carat gold prices in the national capital traded at Rs 54,560 per 10 gram. Price of 24-carat gold stood at Rs 53,600 per 10 gram in Chennai. In Mumbai, the rate for 24-Carat gold stood at Rs 51,470 as per Good Returns website.
As per Geojit Financial Services, prices continue to trade in a range. The resistance of $1976 needs to be cleared for the continuation of rallies. Likewise, the immediate downside obstacle of $1900 should be broken to trigger selling pressure.
For MCX Gold August, resistance is placed at 52,320 and support is at 49,960. For MCX Silver August futures, resistance is at 71,250 and the support is placed at 65,800.