Gold price rises for third day, Silver rates at Rs 64,500
Rupa Burman Roy October 12, 2020
Gold, Silver prices in India on October 12: Gold price traded above Rs 51K mark in India on Monday, after rising consecutively for three-sessions, tracking strength from overseas.
Gold October Futures on the Multi Commodity Exchange traded Rs 266 higher at Rs 51,085 after hitting an intraday high and low of Rs 51,100 and Rs 50,830, respectively.
Silver September Futures traded at Rs 63,900 per kg today, rising Rs 1053 over the last close of Rs 62,853 per kg.
Overseas, Comex gold traded flat $1,909.30 today, while US gold futures were up 0.4% at $1,934.10, aided by hopes for another fiscal stimulus. Spot gold slipped 0.1% to $1,928.06, after hitting its highest level since Sept. 21 at $1,932.96 earlier in the session. Silver rose 1.1% to $25.39 per ounce.
Gold has gained 27% so far this year as major central bankers have called for renewed government spending to recover major economies from the coronavirus pandemic-induced recession.
Uncertainty around US elections and the possibility of additional stimulus drove investors to the bullion, which is considered as a hedge against inflation and currency debasement.
Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said," US FED officials worried that a lack of further fiscal stimulus would jeopardize an economic recovery that was moving faster than expected, according to meeting minutes. The meeting featured extensive discussion about the economic outlook, as members said the economy was doing better than expected in good part because of the fiscal help provided by Washington. That support is in jeopardy as talks have broken down between the White House and congressional Democrats and may not resume before the November election."
Worldwide, there were 377 lakh confirmed cases and 10.81 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 71-lakh mark and the death toll from COVID-19 infections rose to 10.9 lakh, as of today.
On the retail front, physical 24-carat bullion per 10 gram in the national capital gained to Rs 53,980. Price of 24-carat gold stood at Rs 53,260 per 10 gram in Chennai. In Mumbai and Kolkata, the rate for 24-Carat gold fell back to Rs 50,560 and 53,220, respectively.