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Gold price rises for 2nd day; silver rates at Rs 66,700

Gold, Silver prices today: Traders said investors rushed to the safe-haven asset ahead of the release of US Monthly payroll data, scheduled later in the day

Rupa Burman Roy | September 4, 2020 | Updated 13:14 IST
Gold price rises for 2nd day; silver rates at Rs 66,700
Gold, Silver prices in India on September 4: Silver September Futures, on the other hand, traded flat at Rs 66,875 per kg today after they touched an intraday low of Rs 66,711 per kg

Gold, Silver prices in India on September 4: Gold traded mildly higher for the second consecutive session on Friday, amid a marginal pullback in global equity markets. Traders said investors rushed to the safe-haven asset ahead of the release of US Monthly payroll data, scheduled later in the day.

On the Multi-Commodity Exchange platform, gold traded a tad higher tracking international commodity markets. Gold October Futures gained Rs 80 at Rs 50,882, after hitting an intraday high of Rs 50,977 against the previous close of Rs 50,742 per 10 gm. MCX gold futures currently trade over Rs 5,300 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.

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Silver September Futures, on the other hand, traded flat at Rs 66,875 per kg today after they touched an intraday low of Rs 66,711 per kg. Silver Futures hit a lifetime high of Rs 77,949 on August 7.

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In the international spot market, gold and silver continued positive momentum, despite rising dollar. Spot gold was up 0.3% at $1,935 per ounce after 1.4% fall yesterday. While Comex gold was rising 0.35% at $1,934 per ounce, US gold futures gained 0.2% to $1,941. Silver gained 0.2% to $26.67 per ounce.

A weak momentum in the equity market also helped the bullion recover from its recent fall this week. Domestic as well as international equity markets were trading majorly lower today. Most Asian indices were falling on Friday tracking overnight plunge in US markets. Stocks on Wall Street closed sharply lower as economic data raised concerns.

Rising coronavirus cases also helped the commodity cap losses. Worldwide, there were 264 lakh confirmed cases and 8.73 lakh deaths from COVID-19 outbreak. Meanwhile, India's death toll from COVID-19 infections rose to 68,569 and total coronavirus cases to 39.36 lakh as of Friday.

The price of bullion metal has slipped 1.5% this week overseas, on the back of strong comeback in manufacturing activities in major economies, denting the safe-haven appeal.

In India, 24-carat bullion per 10 gram in the national capital traded at Rs 54,120. Price of 24-carat gold stood at Rs 53,210 per 10 gram in Chennai. In Mumbai and Kolkata, the rate for 24-Carat gold stood at Rs 50,350 and 52,700, respectively.

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Technical outlook

On gold's outlook, Hareesh V, Head of Commodity Research at Geojit Financial Services said," A steady U.S dollar and optimism that the deadly pandemic may be under control soon continue to hit the safe-haven appeal of gold. However, hopes of more fiscal stimulus measures and elevating U.S-China trade tensions would offer firm support to prices. At the same time, traders may be extra cautious today ahead of the key U.S payroll and unemployment data."

On London spot technical, he added, "Support of $1900 an ounce needs to be cleared for the continuation of selling pressure. Else, may see a choppy trading session for the day".

On Silver futures, Geojit Financial Services in its daily note said, "Support of $26 likely to hold the downside and it may inch prices higher initially. However, a close above $28 is needed to trigger major rallies in the counter. A direct drop below $26 is a signal of liquidation. MCX Silver Nov futures' resistance is placed at Rs 70820 and support at Rs 64300.

On Gold, the agency said, "Breaking the immediate support of $1920 is required to continue selloffs in the counter. Else, may see recovery upticks for the day. However, a direct rise above $1974 is a signal of a bullish outlook." As per the agency, Gold futures resistance is placed at 51,850 and support at 50520.

Gold price trading flat; silver rate at Rs 68,500

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