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Gold price steadies post recent fall; silver back above Rs 60K mark

Gold, Silver prices today: Spot gold was steady at $1,884.64 per ounce, after rising 1.1% in the previous session. US gold futures were down 0.22% at $1,887

Rupa Burman Roy | October 8, 2020 | Updated 12:53 IST
Gold price steadies post recent fall; silver back above Rs 60K mark
Gold, Silver prices on October 8: Since hitting a record peak of $2,072.50 in August 2020, bullion metal has been trading in a consolidation phase from last week amid uncertainty on the US stimulus

Gold, Silver prices in India on October 8: Gold price steadied after slipping for the three consecutive sessions on Thursday and traded above the key psychological level of Rs 50K, following a flat trend from overseas. Gold prices were little changed today as renewed hopes of more U.S. stimulus helped restore investor confidence.

In muted trading session, Gold October Futures on the Multi Commodity Exchange-traded Rs 66 higher at Rs 50,114, after hitting an intraday high and low of Rs 50,134 and Rs 49,950, respectively. Yesterday, gold futures on MCX closed at Rs 50,048 per 10 gm. The bullion, trades almost Rs 6,000 lower than its lifetime high of Rs 56,191 per 10 gm hit last month.

Silver September Futures traded above 60K mark at Rs 60,608 per kg today, rising By Rs 160 over the last close of Rs 60,419 per kg. Silver Futures hit a lifetime high of Rs 77,949 on August 7.

Spot gold was steady at $1,884.64 per ounce, after rising 1.1% in the previous session. US gold futures were down 0.22% at $1,887, while Comex gold was trading flat at $1,883 per ounce. On the other hand, silver fell 0.3% to $23.78 per ounce.

Gold price falls on weak global cues; silver rates below Rs 60K mark

Since hitting a record peak of $2,072.50 in August 2020, bullion metal has been trading in a consolidation phase from last week amid uncertainty on the US stimulus.

Gold futures remained unchanged after Fed policymakers said their economic outlook assumed additional fiscal support and showed concerns over economic recovery as lack of White House fiscal aid, according to U.S. Federal Reserve minutes released on Wednesday. Central bank officials believed that U.S. economy's most pressing need is for a new round of government spending and added that aid packages are too small or too late, the economy is in for a weak recovery. Investors also awaited weekly jobless claims data to further gauge the health of the world's largest economy.

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Delay in negotiations over a new US coronavirus relief package has kept sentiments tepid for the safe-haven asset. Meanwhile, the dollar index was little changed against other currencies, as the focus changed towards a possibility of the stimulus plan.

Viewed as a hedge against inflation and currency debasement, gold prices have risen 24% this year, supported by unprecedented monetary stimulus from major central banks and amid rising worries about the sluggish pace of economic recovery due to the coronavirus pandemic. Worldwide, there were 363 lakh confirmed cases and 10.6 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 68-lakh mark and the death toll from COVID-19 infections rose to 10.5 lakh, as of today.

On the retail front, physical 24-carat bullion per 10 gram in the national capital gained to Rs 53,870. Price of 24-carat gold stood at Rs 52,420 per 10 gram in Chennai. In Mumbai and Kolkata, the rate for 24-Carat gold fell back to Rs 50,410 and 52,390, respectively.

On Gold's near term outlook, Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said,"On Wednesday, Spot Gold ended higher by 0.54 per cent to close at $1887.2 per ounce and Spot silver gained over 3.2 per cent to close at $23.8 per ounce as additional stimulus demanded by U.S. President Donald Trump boosted appeal for the safe haven, Gold. On MCX Gold prices corrected 0.95% and closed at 50048 levels. Silver also corrected by 0.25% and closed at 60419 levels."

He added, "After calling off the negotiations over further stimulus aid with the democrats until the upcoming elections, Donald Trump asked Congress to infuse $25 billion in new payroll assistance to U.S. passenger airlines in order to help ten thousands of workers maintaining their jobs. Hopes over further coronavirus relief fund levied support for the Gold as it is considered as a hedge against inflation and currency debasement. Moreover, weaker Dollar and worries over the widening impact of the pandemic also elevated the yellow metal prices. "

On gold futures technical, he said, "As for today traders can go for Buy in gold at Rs 49,900 levels with the stop loss of Rs 49600 levels for the target of 50400 levels. They can also go for Buy in Silver at Rs 60,000 levels, with the stop loss of 59,300 levels and for the target of 61,500 levels."

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