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Gold price trades above Rs 50,000 post six-day fall; Silver at Rs 60,000

Gold, Silver prices today: Global rates of the bullion metal gained marginally as US dollar retreated from a two-month high of 94.745 reached last week, making gold cheaper for holders of other currencies

Rupa Burman Roy | September 29, 2020 | Updated 12:26 IST
Gold price trades above Rs 50,000 post six-day fall; Silver at Rs 60,000
Gold, Silver prices in India on September 29: Gold, that has risen over 20% this year, slumped last week by 10% on the back of firm dollar and over fresh rounds of coronavirus-induced lockdowns across Europe and Britain

Gold, Silver prices in India on September 29: Gold price steadied after six days of straight fall and traded above the key psychological level of 50K in the Indian commodity market on Tuesday.

On the Multi Commodity Exchange, Gold October Futures traded a tad higher today, rising by Rs 20 to Rs 50,160, after hitting an intraday high of Rs 50,265 against the previous close of Rs 50,138 per 10 gm. The bullion, however, trades almost Rs 6,000 lower than its lifetime high of Rs 56,191 per 10 gm hit last month.

Silver September Futures, on the other hand, traded Rs 260 lower at Rs 60,134 per kg today after they touched an intraday low of Rs 60,060 per kg. Silver Futures hit a lifetime high of Rs 77,949 on August 7.

Global rates of the bullion metal gained marginally as US dollar retreated from a two-month high of 94.745 reached last week, making gold cheaper for holders of other currencies.

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The dollar fell as investors turned cautious ahead of the US presidential debate between Donald Trump and his Democratic rival Joe Biden. Market participants were also awaiting developments on a new US coronavirus stimulus package.

Spot gold rose 0.1% to $1,883.51 per ounce, U.S. gold futures were up 0.3% at $1,888.40, while Comex gold was trading 0.37% higher at $1,859 per ounce. On the contrary, Silver eased 0.2% to $23.66 per ounce.

On yesterday's trend, Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said," As expected yesterday gold prices increased by 0.98% and closed at 50,160 levels and silver increased by 2.32% and closed at 60,396 levels. Weakness in dollar supports the gold and silver prices as a safe haven investment. On Monday, Spot gold ended higher by 1.12 percent to close at $1880.9 per ounce as a weaker Dollar supported the yellow metal."

Gold price falls for sixth straight day, silver rates at Rs 58,500

Viewed as a hedge against inflation and currency debasement, the bullion has risen substantially this year amid rising worries about the sluggish pace of economic recovery due to the coronavirus pandemic. Worldwide, there were 335 lakh confirmed cases and 10.06 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 61-lakh mark and the death toll from COVID-19 infections rose to 0.96 lakh.

Gold, that has risen over 20% this year, slumped last week by 10% on the back of firm dollar and over fresh rounds of coronavirus-induced lockdowns across Europe and Britain.

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 stood at Rs 52,050 per 10 gram in Chennai. In Mumbai and Kolkata, the rate for 24-Carat gold fell lower to Rs 49,260 and 51,570, respectively.

In upcoming domestic cues, RBI is set to begin its three-day monetary policy meeting on Tuesday. Overseas, the US will release its CB consumer confidence data on Tuesday, while Euro will take cues from ECB president's speech on Monday and Wednesday.

Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking said, " The dollar is also trading lower on lack of big moves ahead of the U.S. presidential debate on Tuesday and the release of U.S. economic data later in the week. Political uncertainty also pressurizes the dollar which supports the demand of Gold as a safe haven investment. 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."

Expressing views on today's outlook for the safe haven assest, Anuj Gupta added,"Falling dollar after a solid rally in the earlier week might support Gold prices in today's session. On the MCX, gold prices are expected to trade higher in today's session. As for today traders can go for buy in gold at Rs 50,000 levels with the stop loss of Rs 49,600 levels for the target of 50,700 levels. They can also go for buy in Silver at Rs 60,500 levels, with the stop loss of 59,500 levels and for the target of 62,000 levels."

"Going forward, clarity on fiscal stimulus in the US, control on the number of COVID cases worldwide, or a vaccine will guide gold prices", said Nish Bhatt, Founder & CEO, Millwood Kane International.

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. At the same time, uncertainty prevails in the metal ahead of the first presidential election debate in the US this week."

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