Gold prices today rise but down about ₹6,000 from record highs, silver jumps1 min read . Updated: 09 Oct 2020, 09:16 AM IST
- Analysts expect buying interest to emerge in gold at lower levels
- Gold prices have remained choppy in recent weeks amid a volatile US dollar
Gold and silver prices edged higher today in India, tracking firm global rates. On MCX, December gold futures were up 0.8% to ₹50,584 while silver futures rose 1.8% to ₹61605 per kg. In the previous session, gold price had edged up ₹142 amid a choppy session while silver had gained 0.17%. Gold and silver prices in India have corrected sharply from record high levels of ₹56,200 and ₹80,000 respectively, hit in August this year.
In global markets, gold prices were higher amid optimism over a new US coronavirus relief package after President Donald Trump said talks with Congress have restarted. A weaker US dollar also supported gold. Spot gold rose 0.3% to $1,898.31 per ounce. News reports said that Treasury Secretary Steven Mnuchin told Nancy Pelosi that President Donald Trump wants agreement on a comprehensive aid package.
The dollar index was down 0.2% and remained on track for a second consecutive weekly decline. Gold is seen as a hedge against inflation and currency debasement and tends to benefit to benefit from widespread stimulus.
Among other precious metals, silver rose 0.4% to $23.93 per ounce, platinum gained 0.6% to $867.06, and palladium was up 0.3% to $2,379.29.
But some investors remained skeptical on an agreement on a stimulus package in Washington after Trump pulled his negotiators out of talks on a comprehensive deal on Tuesday.
"Gold may witness choppy trade reflecting choppiness in US dollar and equity markets as more clarity is awaited on US stimulus front. However, we may see buying interest emerging at lower levels as concerns about health of US economy may keep US dollar pressurized," Kotak Securities said.
Global central banks also also slowed down gold purchases. The world's central banks sold more gold in August than they bought, the WGC said, ending a year-and-a-half-long run of monthly gold accumulation and helping stall a rapid rise in gold prices. (With Agency Inputs)