Home / Markets / Commodities /  Gold price today jumps to near 2-month high, silver rate move up
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Gold prices edged higher today in India, tracking positive global cues. On MCX, gold futures were up 0.4% to two-month high of 47,979 per 10 gram, extending Friday's 0.9% gain. Silver futures were up 0.4% to 65,898 per kg.  In global markets, gold rates edged higher today to near the $1,800 level, supported by a weaker dollar.  Spot gold was up 0.3% at $1,798.51 per ounce. The dollar index was off 0.12%, making bullion more appealing to buyers holding other currencies.

Among other precious metals, spot silver rose 0.7% to $24.48 per ounce. Domestic brokerage Geojit said that as long as $1760 holds expect rallies to continue the day. For silver, breaking the resistance of $24.60 is needed to continue rallies, it added.

Gold traders are awaiting US third quarter GDP figures due on Thursday. A weak reading is likely to weigh on the dollar. Federal Reserve Chair Jerome Powell on Friday said the US central bank should start the process of reducing its support of the economy by cutting back on its asset purchases, but should not yet touch interest rates.

Analysts say that markets are still trying to position themselves for a widely expected tapering of the U.S. stimulus programme this year, and the possibility of rate hikes late in 2022.  Last week, yields on 10-year Treasury notes hit a five-month high of 1.7064% last week.

Gold is typically seen as a hedge against inflation but higher interest rates translate into a higher opportunity cost for holding bullion which pays no interest.

Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers, said," Since India may witness rising footfall at jewellery shops ahead of Diwali, retail buying could also be a positive trigger for the yellow metal. Meanwhile, amid a strong momentum in base metals."

Ahead of the festive season, the latest tranche of sovereign gold bonds opened for subscription today. The bonds under the 2021-22 series will be issued in four tranches during October 2021-March 2022, taking the total to 10. Under the series, bonds were issued in six tranches from May 2021 to September 2021.

The issue price has been fixed at 4,761 per 10 gram with a small discount for those applying those investors applying online and the payment against the application is made through digital mode. For such investors, the issue price of gold bond will be 4,711. (With Agency Inputs)

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