Gold futures dipped to as low as Rs 51,000 on Tuesday, whereas silver declined to Rs 64,505
Gold Price In India: Domestic gold and silver futures ended a volatile session lower on Tuesday as global spot rates eased amid improving risk sentiment among investors. Multi Commodity Exchange (MCX) gold futures – due for a delivery on October 5 – traded in a range of Rs 533, between Rs 51,000 and Rs 51,533, compared to their previous close of Rs 51,269. MCX silver futures (September 4) followed suit, moving between Rs 64,505 and Rs 66,159 compared to their previous close of Rs 65,569. (Also Read: Silver Is Outperforming Gold, Is It The New Gold?)
MCX gold futures ended at Rs 51,115, down Rs 154 – or 0.30 per cent – for the day, and silver futures shut shop at Rs 64,720, down Rs 849 – or 1.29 per cent.
In the international market, spot gold was last seen trading 0.49 per cent lower at $1,929.70 per ounce, while silver was down 0.27 per cent at $26.68 per ounce, as hopes surrounding a potential COVID-19 vaccine and positive signals on the US-China trade front buoyed risk sentiment.
Gold has been one of the most consistent gainers through the six months of coronavirus pandemic-led turmoil in financial markets.
The dollar index – which gauges the US dollar against six other currencies – was down 0.09 per cent, having declined as much as 0.30 per cent earlier on Tuesday. A firmer dollar makes bullion more expensive for holders of other currencies. (Also Read: Gold’s “Dream Run” May Continue, Say Analysts)
The rupee ended a volatile session flat at 74.32, a five-month high it reached in the previous session.
(Gold futures had risen to an all-time high of Rs 56,191 on August 7)
The price of gold and silver jewellery settled at Rs 51,454 per 10 grams and Rs 64,594 per kilogram respectively, excluding GST, according to Mumbai-based India Bullion and Jewellers Association (IBJA).
#Gold and #Silver Closing #Rates for 20/08/2020#IBJApic.twitter.com/G9FAiiuKxs
— IBJA (@IBJA1919) August 20, 2020
What Analysts Say
“Price seems to have found a base near $1,900/oz but struggled to manage above $2,000/oz level. Currently, trend in US dollar and US 10 year bond yield is the key price determining factor for gold,” said Ravindra Rao, VP-head commodity research, Kotak Securities.
“Gold may continue to witness choppy trade unless there are fresh triggers however we may see buying interest at lower levels amid persisting virus risks and increased US-China tensions.”
