Gold, Silver prices in India on September 8: Gold price eased on Tuesday as the dollar strengthened after three sessions of gains. Prices of gold and silver were trading a tad lower in Indian as well as international commodity markets on Tuesday, as investors turned cautious awaiting the outcome of the European Central Bank meeting this week.
On the Multi-Commodity Exchange, Gold October Futures traded Rs 185 lower at Rs 50,880, after hitting an intraday low of Rs 50,746 against the previous close of Rs 51,065 per 10 gm. MCX gold futures currently trade almost Rs 5,126 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.
Similarly, silver September Futures fell Rs 312 at Rs 67,959 per kg today after they touched an intraday low of Rs 67,770 per kg. Silver Futures hit a lifetime high of Rs 77,949 on August 7.
Positive momentum in US stock futures and Asian shares as well as rise in demand for the American currency from banks and importers kept gold prices in check on Tuesday.
In the international spot market, Spot gold was down 0.2% at $1,925 per ounce amid strengthening American currency. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.44% to 93.12, making gold more expensive for holders of other currencies.
Comex gold traded flat at $1,958 per ounce and US gold futures was also steady at $1,934. Silver dipped 0.9% to $26.75 per ounce.
Although, rising coronavirus cases helped the commodity to cap losses. Worldwide, there were 274 lakh confirmed cases and 8.96 lakh deaths from COVID-19 outbreak. Meanwhile, India's death toll from COVID-19 infections rose to 72,816 and total coronavirus cases to 42.80 lakh as of Tuesday.
In India, 24-carat bullion in the national capital traded at Rs 54,170 per 10 gram. Price of 24-carat gold stood at Rs 53,300 per 10 gram in Chennai. In Mumbai and Kolkata, the rate for 24-Carat gold stood at Rs 50,600 and 53,930, respectively.
Commenting on gold's trend, Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking said, "Yesterday, Gold prices increased by 0.76% and closed at Rs 51,065 levels. Silver prices also increased by 1.49% and closed at 68,271 levels. In the international market, spot gold is trading at $1923 per ounce and silver is trading at $26.73 per ounce levels. Gold and silver is trading lower today on the back of a sharp recovery in US Dollar as investors weighed whether an accommodative turn from the European Central Bank later this week could hit the euro, while the pound nursed losses due to Brexit uncertainty."
"As of today, traders can go for sell in gold at Rs 51,100 levels with the stop loss of Rs 51,450 levels for the target of 50,200 levels. They can also go for sale in Silver at Rs 68,500 levels, with the stop loss of 69,900 levels and for the target of 65,000 levels. In the Bullion index, 'Bulldex' traders can also go for sell at 16000 with the stop loss of 16250 and for the target of 15700," he added.