Gold, Silver Price In India: Domestic gold and silver futures climbed higher on Tuesday amid weakness in the dollar overseas, as precious metals rose ahead of a two-day meeting of the US central bank. Global equities registered cautious gains in anticipation of a status on the accommodative monetary policy in the world’s largest economy. Multi Commodity Exchange (MCX) gold futures (due for a October 5 delivery) rose by Rs 402 – or 0.78 per cent – to settle at Rs 52,089 for the day, whereas silver futures (December 4) rose 1.08 per cent to Rs 69,708.
During the session, the gold contract had risen to as high as Rs 52,182, and silver strengthened to Rs 69,887. (Track Gold Futures Here)
Globally, spot gold on Comex touched a nearly two-week high of $1,968.80 per ounce, as a softer dollar and expectations the Federal Reserve will reinforce its accommodative monetary policy supported the yellow metal. Silver futures jumped 1.86 per cent to touch the $27.36 an ounce mark. (Also Read: Is Silver The New Gold?)
The dollar index – which measures the dollar against six currencies – declined as much as 0.29 per cent on Tuesday.
Back home, spot gold settled at Rs 51,893 per 10 grams on Tuesday, and silver at Rs 66,758 per kilogram, excluding GST, according to Mumbai-based industry body IBJA or India Bullion and Jewellers Association.
— IBJA (@IBJA1919) September 15, 2020
Gold has been one of the most consistent gainers through the six months of coronavirus pandemic-led turmoil in financial markets. (Also Read: Gold “Dream Run” May Continue: Analysts)
What Analysts Say
“Unless there are major triggers, we may see directionless trade in gold going forward, as the price of the yellow metal stays stuck in a range of $1,900-2,000/oz. Mixed activity in exchange traded fund flows also shows lack of direction in the market,” said Ravindra Rao, VP-head commodity research, Kotak Securities.
Gold may remain choppy amid lack of cues going ahead, he added. “However, general bias may be on the upside owing to increasing challenges to global economy and hopes of dovish stance of major central banks.”