Gold, Silver prices in India on September 1: Gold price gained for the third consecutive session in Indian as well as international commodity markets on Tuesday, backed by weak US dollar. Prices of gold and silver gained as Fed's new policy signalled that interest rates would remain low for some time.
Investors were optimistic on the US Federal Reserve's new strategy to adopt an average inflation target and restore full employment in the United States.
Globally, weak momentum in the equity market and rising coronavirus cases also helped the commodity gain momentum. Worldwide, there were 256 lakh confirmed cases and 8.54 lakh deaths from COVID-19 outbreak. Meanwhile, India's death toll from COVID-19 infections rose to 65,435 and total coronavirus cases to 36.91 lakh as of Tuesday.
On the Multi-Commodity Exchange, Gold October Futures rose by Rs 358 at Rs 52,059, after hitting an intraday high of Rs 52,100 against the previous close of Rs 51,710 per 10 gm. MCX gold futures currently trade almost Rs 4,481 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 1,116 at Rs 71,553 per kg today after they touched an intraday high of Rs 73,254 per kg. Silver Futures hit a lifetime high of Rs 77,949 on August 7.
Backed by US Federal Reserve's new policy commentary for more inflation tolerance, Gold spot traded higher at $1962 an ounce while Silver extended gains by around 1.0% and traded near $27.75 an ounce.
Gold and silver rates climbed to their highest level in nearly two weeks on Tuesday 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 continued downward momentum and slipped to multi-year lows against the basket of Asian currencies.
Dollar fell after US Federal Reserve's announcement of a new monetary policy strategy raised the expectation the central bank would keep interest rates ultra-low.
In the international spot market, Spot gold was up 0.7% at $1,983.77 per ounce, after hitting its highest since August 19 at $1,984.97 earlier in the session. While Comex gold gained 0.88% at $1,985 per ounce, US gold futures rose 0.6% to $1,990. silver jumped 1.3% to $28.59 per ounce, its highest since August 11.
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 54,940 per 10 gram. Price of 24-carat gold stood at Rs 54,050 per 10 gram in Chennai. In Mumbai, the rate for 24-Carat gold stood at Rs 51,510 as per Good Returns website.
As per Geojit Financial Services, immediate and stiff resistance is seen at $1980 which needs to be cleared for continuation for further rallies.
For MCX Gold August, resistance is placed at 52,120 and support is at 49,960. For MCX Silver August futures, resistance is at 71,250 and the support is placed at 65,800.