Gold prices today move higher after 3-day fall, silver rates jump1 min read . Updated: 07 Sep 2020, 05:08 PM IST
- Analysts expect gold prices to remain choppy in near term
- They expect buying interest in gold to emerge at lower levels amid dovish Fed stance
Gold prices in India snapped a three-day losing streak when they edged higher today. On MCX, October gold futures rose 0.2% to ₹50,792 per 10 gram while silver futures jumped 1% to ₹67,982 per kg. In the previous session, gold prices had dipped 0.1% while silver rates had edged 0.8% higher. In India, gold had hit a record high of ₹56,200 per 10 gram on 7th August. From that highs, gold is now down over ₹5,000 per 10 gram. On the other hand silver also has plunged over ₹10,000 per kg from previous month's highs.
Meanwhile, retail demand for physical gold in India picked up slightly last week on a dip in domestic prices.
In global markets, gold prices today edged higher but the gains were capped by a stronger US dollar. Spot gold was up 0.2% at $1,935.53 per ounce. A stronger greenback makes gold expensive for holders of other currencies. Among other precious metals, silver eased 0.2% to $26.84 per ounce while platinum rose 0.6% to $900.01.
Supporting gold price is rising virus cases and increasing US-China tensions, say analysts. "Global virus cases continue to rise and threaten to impact the economic recovery," says Kotak Securities.
Gold may remain choppy as US equity markets are showing some vulnerability to correction while US dollar index is attempting some pull back, the brokerage said.
But Kotak expects buying interest in gold to emerge at lower level as Fed’s dovish stance. It says that mixed US economic data may limit upside in US dollar.
Among other metals, copper prices rose in global markets on hopes of a sustained economic recovery in top consumer China. Three-month copper on the London Metal Exchange rose 1.1% to $6,785.50 a tonne. (With Agency Inputs)