Gold, Silver Price In India: Domestic gold and silver futures moved in a narrow range on Friday, as optimism on a global recovery from the coronavirus pandemic was offset by weakness in the dollar weighed. Multi Commodity Exchange (MCX) gold futures (due for settlement on October 5) gained by Rs 173 – or 0.34 per cent – to end at Rs 51,626, whereas silver futures slipped by Rs 192 – or 0.28 per cent – to settle at Rs 67,950. In the international spot market, gold gained, amid lingering concerns over an economic recovery from the damage inflicted by the coronavirus pandemic that were underscored by elevated weekly US jobless claims data. (Track Gold Futures Here)
Spot gold (Comex) rose as much as 0.73 per cent to $1,964.10 per ounce, whereas silver fluctuated between gains and losses, between $26.87 and $27.58 per ounce, as against its previous close of $27.10 per ounce. (Also Read: Is Silver The New Gold?)
The dollar index – which measures the American currency against six peers – fell as much as 0.21 per cent on Friday. The rupee appreciated 0.27 per cent to settle at 73.45 against the greenback.
US weekly jobless claims report on Thursday showed a smaller-then expected decline in new claims, weighing on the dollar and bolstering the appeal of gold as an investment alternative.
Back home, spot gold closed at Rs 51,620 per 10 grams for the day, and silver at Rs 65,905 per kilogram, excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association.
— IBJA (@IBJA1919) September 18, 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
“Despite mixed trade in last few days, gold has continued to trade in a broad range of $1,900-2,000/oz amid lack of fresh cues. The key event for this week was the central bank meetings, and while their general commitment towards continuing with accommodative monetary policy is positive for gold, lack of any fresh action dampened market sentiment,” said Ravindra Rao, VP-head commodity research, Kotak Securities.
“Gold may remain choppy amid lack of clear cues and mixed trade in equities and US dollar however buying might re-merge at lower levels amid global uncertainty and loose monetary policy stance of major central banks,” he said.