Home >Markets >Commodities >Gold prices rise today but down 2000 this week, silver rates higher
Gold rates today: Prices on MCX fell to  ₹50,677 per 10 gram
Gold rates today: Prices on MCX fell to 50,677 per 10 gram

Gold prices rise today but down 2000 this week, silver rates higher

  • A sharp drop in gold and silver prices this week in India is expected to boost gold demand on Dhanteras and Diwali
  • Gold may struggle for direction in near term, say analysts

Gold and silver edged higher today in Indian markets though they remain sharply lower this week. On MCX, gold futures rose 0.35% to 50,339 per 10 gram while silver futures gained 0.38% to 62,780 per kg. In the previous session, gold futures had declined 0.6% or 310 per 10 gram while silver rates had tumbled 1% or 600 per kg. The recent drop in prices and festive season is expected to give a boost to gold demand in India. Dhanteras will be celebrated today while Diwali on Saturday. In India, gold prices have seen a sharp correction this week, falling about 2,000 per 10 gram this week.

"Amid pent-up customer demand in the market, the revival of the economy and positive consumer sentiment, Dhanteras will kick off a decent buying season for the jewellers across the country. The gold buying ritual on this auspicious occasion will also be driven by the enhanced investment value of gold in this unprecedented time. The purchase appetite of customers is likely to go up during Dhanteras and Diwali," said Ahammed MP, Chairman, Malabar Gold & Diamonds.

In global markets, gold prices edged higher today as global stock market rally on covid vaccine optimism showed signs of stalling. Gold was at $1,871.03 an ounce, up 0.3%. A surge in covid cases around the world and a weaker US dollar supported gold at lower levels.

The US dollar index was down 0.06%, making gold cheaper for holders of other currencies. Among other precious metals, silver fell 0.4% to $24.16 per ounce while platinum was flat at $865.

Gold traders will be keenly watching comments from European Central Bank President Christine Lagarde and Federal Reserve Chairman Jerome Powell who are scheduled to speak at an online ECB Forum.

Mixed ETF activity also shows lack of confidence in investors, say analysts. Holdings of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund or gold ETF, fell 0.72% to 1,240.74 tonnes on Wednesday.

"Gold may struggle for direction as market players counter current worsening virus situation against increased possibility of a vaccine in coming months and also as market players assess feasibility of a large stimulus from US. The general bias however may be on the upside amid persisting virus risks and loose monetary policy stance of major central banks," Kotak Securities said in a note.

Investors who want to invest in gold this Dhanteras also have the option of investing in sovereign gold bonds what are currently open for subscription. The issue price for Sovereign Gold Bond Scheme 2020-21-Series VIII has been fixed at 5,177 per gram of gold. (With Agency Inputs)

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.

Close
×
My Reads Redeem a Gift Card Logout