Gold prices recover today, silver gains
Gold prices rose by Rs 30 to Rs 30,650 per 10 gram helped by positive trend overseas and buying by local jewellers
New Delhi: Gold prices rose by Rs 30 to Rs 30,650 per 10 gram today, helped by a positive trend overseas and buying by local jewellers, reported PTI. In global markets, gold prices advanced as the dollar eased and markets awaited a speech by the Federal Reserve chairman for fresh clues on the direction of US monetary policy. In Delhi, gold rates of 99.9% and 99.5% purity edged up by Rs 30 each to Rs 30,650 and Rs 30,500 per 10 gram, respectively. The precious metal had lost Rs 30 in Thursday’s trade. Sovereign gold remained unchanged at Rs 24,500 per piece of 8 gram in limited deals.
Global spot gold rate was up 0.3% at $1,188.96 an ounce, after falling 0.9% on Thursday. Prices have risen about 0.3% so far this week. US gold futures were up 0.1% at $1,195 an ounce. Gold has declined about 9% so far this year.
Silver prices also recovered and traded higher by Rs 50 to Rs 37,850 per kg due to increased offtake by industrial units and coin makers, added the report. On the other hand, silver coins continued to trade at the previous level of Rs 72,000 for buying and Rs 73,000 for selling of 100 pieces.
Traders are waiting for a speech by Federal Reserve Chairman Jerome Powell later in the day. Analysts expect that he will keep a hawkish stance. The Fed’s most recent policy meeting minutes showed that the US central bankers are ready to raise interest rates again if the economy remains strong. That left little doubt that Chairman Jerome Powell plans to raise the benchmark lending rate next month.
Global gold prices have corrected since hitting a high of $1,365.23 in April. “Investor appetite for gold has been in the doldrums in recent months. Rate hikes, low inflation, rising equity markets and a strong dollar have significantly diminished the appeal of gold,” ANZ analysts said in a note.
“The fall in gold prices could invigorate a pick-up in physical demand. Overall we see gold prices stabilising at current levels.”
The Indian rupee along with emerging Asian currencies weakened against the US dollar on Friday as prospects for a quick resolution of the US-China trade war faded after two days of talks ended with little progress. The home currency opened at 70.20 a dollar and was trading at 70.19, down 0.11% from its previous close. The dollar index, which measures the greenback against a basket of six major currencies, fell 0.2% to 95.471on Friday, after rising 0.6% the day before.
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