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Gold price turns volatile, silver rates at Rs 59,300

Gold, Silver prices today: Since the beginning of this year, the yellow metal has risen 41.5% to life-time high of Rs 56,191 per 10 gm. However, the bullion now trades almost Rs 6,000 lower than its lifetime high hit last month on August 7

twitter-logoBusinessToday.In | September 25, 2020 | Updated 12:40 IST
Gold price turns volatile, silver rates at Rs 59,300
Gold, Silver prices in India on September 25: In the international market, gold gained strength after four straight sessions of fall and traded flat

Gold, Silver prices in India on September 25: Gold and Silver prices turned volatile after four sessions of fall on Friday as a weaker US dollar boosted the appeal of bullion metal. Hopes of more stimulus in the United States also aided the sentiment.

Precious metals traded flat in overseas as well as international commodity market today after falling to the lowest in two months on renewed hopes of more stimulus measures in US.

On the Multi Commodity Exchange, Gold October Futures fell by Rs 91 after hitting an intraday high of Rs 49,990 against the previous close of Rs 49,904 per 10 gm. In this week, gold futures have fallen 3.2% on MCX.

Since the beginning of this year, the yellow metal has risen 41.5% to life-time high of Rs 56,191 per 10 gm. However, the bullion now trades almost Rs 6,000 lower than its lifetime high hit last month on August 7.

Silver September Futures traded Rs 472 lower after they touched an intraday low of Rs 59,320 per kg. Silver Futures hit a lifetime high of Rs 77,949 on August 7.

In the international market, gold gained strength after four straight sessions of fall and traded flat.

Spot gold rose 0.1% to $1,869.47 per ounce, after falling 4.1% so far this week. Comex gold was trading flat at $1,868 per ounce, while US gold futures were down 0.4% to $1,870.30. Silver fell 0.6% to $23.07 per ounce.

On the retail front, physical 24-carat bullion per 10 gram in the national capital fell to Rs 52,750. Price of 24-carat gold fell to Rs 51,880 per 10 gram in Chennai. In Mumbai and Kolkata, the rate for 24-Carat gold stood at Rs 49,410 and 51,650, respectively.

Market participants will watch the testimony on the economic outlook by the Federal Reserve on any indications that the policymakers are considering more inflation. Investors will also watch developments on potential US coronavirus stimulus.

Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking said, "On Thursday, Spot gold ended marginally higher by 0.24% but headed towards a weakly decline as the strengthening of the U.S. Dollar made the yellow metal undesirable for other currency holders. Spot silver ended higher by 1.6% to close at $23.2 per ounce while prices on the MCX ended higher by 1.95 per cent closing at Rs 59629 per kg."

Gold price slips for fourth day, silver rates at Rs 56,500

Rise in US unemployment claims and hopes over additional stimulus by the US is expected to levy some support for gold prices, he said and added, "Reinforcement of lockdown in the Euro-zone reflecting the alarming increase in Covid-19 cases and a slowdown in the business sector in US & Europe dampened hopes of a paced economic recovery. On August 20, Home sales in the US grew to their highest levels in 14 years which supported the market sentiments."

Worries about the sluggish pace of economic recovery due to the spread of pandemic worldwide have again turned market volatile. Worldwide, there were 324 lakh confirmed cases and 9.87 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 58-lakh mark and the death toll from COVID-19 infections rose to 0.92 lakh.

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On gold falling below Rs 50,000/10gm, Nish Bhatt, Founder & CEO, Millwood Kane International said, "The dream run for Gold has hit a roadblock, after hitting life highs of over Rs 56,000/10gm last month, the yellow metal has been falling. Internationally, Comex Gold is trading below the $1900/oz level. Going forward, clarity on fiscal stimulus in the US, control on the number of COVID cases worldwide, or a vaccine will guide gold prices".

Hareesh V, Geojit's Head of commodity research said," Gold may continue to be supported by renewed US-China tensions and hopes of fresh economic stimulus measures amid rising virus cases across the globe. However, a robust US dollar and optimism over Covid vaccine continue to hit the safe-haven demand of the commodity."   

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