Gold prices rise sharply today, silver follows suit1 min read . Updated: 24 Sep 2019, 05:10 PM IST
- Gold has bounced back from recent lows in India
- Analysts expect gold and silver prices to remain choppy in the near term
In spot markets, gold prices for for 24 Karat rose by ₹330 to ₹39,020 per 10 gram in Delhi, Press Trust of India reported, citing HDFC Securities. Silver also moved up ₹730 to ₹48,720 per kilogram. In the previous trade, it had closed at ₹47,990 per kilogram. In futures markets, gold struggled today. On MCX, October gold futures were down 0.12% at ₹37,879 per 10 grams, though they were off day's low. Silver futures on MCX were down 0.18% at ₹48,025 per kg.
Gold prices were steady today in global markets at near two-week highs at $1,521 per ounce on global slowdown fears and tensions in the Middle East. Prices had climbed to their highest level since September 6 at $1,526.80 in the previous session. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 1.61% to 908.52 tonnes on Monday.
However, improved China-US trade tone weighed on gold. US Treasury Secretary Steven Mnuchin on Monday said that trade talks with China will resume next month.
Gold prices remained supported on hopes of further monetary easing from central banks amid a slowing global economy. German private sector activity shrank for the first time in 6-1/2 years in September, while euro zone business growth stalled this month, a survey showed.
Federal Reserve Bank of St. Louis President James Bullard said the central bank may need to ease monetary policy further to offset downside risks from trade conflicts and too-low inflation. Lower interest rates benefit non-interest yielding assets like gold.
"Gold has bounced back from recent lows and may trade with a positive bias on global growth worries, geo-political tensions and loose monetary policy stance of major central banks. EFT inflows also showed buying interest in gold," Kotak Securities said in a note.
Back in India, gold demand remained subdued because of the Shradh period, which is considered inauspicious for buying bullion, say jewellers.
Retail buying is expected to pick up from end of this month. Demand for gold usually strengthens in the final quarter as India gears up for festivals such as Diwali and Dussehra, when buying gold is considered auspicious. Domestic gold prices include a 12.5% import tax and 3% GST.
Gold prices are up around 20% so far this year, further weighing on demand.
-With Agency Inputs