Gold, Silver prices in India on October 9: Gold price traded above Rs 50K mark in India on Friday, tracking strength from overseas, as uncertainty around US elections and the possibility of additional stimulus drove investors to the safe-haven assets.
Gold October Futures on the Multi Commodity Exchange traded Rs 385 higher at Rs 50,560, after hitting an intraday high and low of Rs 50,600 and Rs 50,300, respectively. Yesterday, gold futures on MCX closed at Rs 50,175 per 10 gm. The bullion, trades almost Rs 6,000 lower than its lifetime high of Rs 56,191 per 10 gm hit last month.
Silver September Futures traded above 61K mark at Rs 61,546 per kg today, rising Rs 1027 over the last close of Rs 60,519 per kg. Silver Futures hit a lifetime high of Rs 77,949 on August 7.
Gold and silver prices in the commodity market have been hitting new highs recently as traders shunned risk and sought safe havens during coronavirus crisis.
Overseas, Comex gold gained 1.1% to $1,909.30 today, while Spot gold futures traded 0.9% to $1,910.96 per ounce, supported by a weaker dollar. Amid renewed hopes for another fiscal stimulus, U.S. gold futures were up 1.2% at $1,916.90 per ounce. Silver rose 2.1% to $24.33 per ounce
The dollar index, that fell 0.2% against its rivals today, was headed for a second straight weekly fall after President Donald Trump said talks with Congress had restarted.
Where Spot gold headed for 0.7% weekly gain, Silver up 2.6% for the week as more U.S. stimulus helped restore investor confidence. Major central bankers have called for renewed government spending, to recover major economies from the coronavirus pandemic indices recession.
Worldwide, there were 367 lakh confirmed cases and 10.66 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 69-lakh mark and the death toll from COVID-19 infections rose to 10.6 lakh, as of today.
On the retail front, physical 24-carat bullion per 10 gram in the national capital gained to Rs 53,350. Price of 24-carat gold stood at Rs 52,370 per 10 gram in Chennai. In Mumbai and Kolkata, the rate for 24-Carat gold fell back to Rs 50,460 and 52,440, respectively.
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said,"On Thursday, Spot Gold ended higher by 0.54% to close at $1887.2 per ounce and Spot silver gained over 3.2% to close at $23.8 per ounce as the strengthening of U.S. currency dented appeal for the Dollar-denominated Gold. MCX gold also increased by 0.25% and closed at 50,175 levels and silver increased by 0.17% and closed at 60,519 levels.
He added," After calling off the negotiations over further stimulus aid with the democrats until the upcoming U.S. elections, Donald Trump asked Congress to infuse $25 billion in new payroll assistance to U.S. passenger airlines in order to help ten thousands of workers maintaining their jobs. Hopes over further coronavirus relief fund boosted markets risk appetite, in turn, pressurizing the safe haven, Gold. However, political uncertainties ahead of the U.S. elections and alarming increase in the virus cases in Europe limited the losses for the yellow metal. Hopes over additional corona relief fund demanded by the U.S. President Donald Trump for payroll assistance is expected to support Gold. "
On its technical outlook, he said," 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 50,400 levels with the stop loss of Rs 50100 levels for the target of 51100 levels. They can also go for Buy in Silver at Rs 61,200 levels, with the stop loss of 60,500 levels and for the target of 62,800 levels."