Gold price rises to Rs 51,380; silver rates at Rs 68,000by Rupa Burman Roy
Gold, Silver prices today: Traders said investors rushed to the safe-haven asset amid weakness in equity markets due to the rising cases of coronavirus, on a global scale
Gold, Silver prices in India on September 14: Gold and silver prices gained on Monday as bleak global growth prospects boosted the appeal for the safe haven assets. Gold was steady as dollar weakened after ECB kept rates unchanged and US jobless claims remained at elevated levels, raising fears of slower global economic recovery from COVID-19 pandemic. Weak employment growth and increase in permanent job loss dented hopes of a paced economic recovery.
Although bullion investors maintained cautious stance following news of potential COVID-19 vaccine as AstraZeneca resumed its phase-3 trial. commodity analysts said traders also awaited the outcome from the US central bank's two-day policy meeting, scheduled on September 15-16.
On the Multi Commodity Exchange, gold traded a tad higher tracking international commodity markets. Gold October Futures gained Rs 61 at Rs 51,380, after hitting an intraday high of Rs 51,599 against the previous close of Rs 51,319 per 10 gm. MCX gold futures currently trade over Rs 4,811 lower than the lifetime high of Rs 56,191 per 10 gm, hit on August 7. On MCX, the yellow metal has risen 41.5% to life-time high since the beginning of the year.
Silver September Futures, gained by Rs 126 to Rs 68,050 per kg today after they touched an intraday high of Rs 68,500 per kg. Silver Futures hit a lifetime high of Rs 77,949 on August 7.
In the international spot market, gold and silver continued positive momentum, aided by a weak dollar. Spot gold was unchanged at $1,948 per ounce. Comex gold was trading 0.45% higher at $1,946 per ounce, while US gold futures was steady at $1,948. Silver, on the other hand, fell 0.3% to $26.68 per ounce.
Dollar dipped as the Euro strengthened after the European Central Bank kept its policy unchanged, making the bullion metal cheaper for other currency holders.
Equities in the US and Asia were also trading mixed as week as investors focussed on technology stocks that showed signs of profit booking. In the US, the Nasdaq Composite Index fell 66.05 points, or 0.6%, on continuing sell-off in tech stocks. The Dow Jones Industrial Average rose 131.06 points, or 0.5%; while the S&P 500 rose 1.78 points, or 0.1%.
Traders said investors rushed to the safe-haven asset amid weakness in equity markets due to the rising cases of coronavirus, on a global scale. Investors were bullish on the safe-haven asset as the number of coronavirus cases rose in the United States and some other countries, re-imposing anti-disease controls that disrupt businesses. Worldwide, there were 291.85 lakh confirmed cases and 9.28 lakh deaths from COVID-19 outbreak. Meanwhile, India's death toll from COVID-19 infections rose to 79,754 and total coronavirus cases to 48.46 lakh as of Monday.
Escalating tensions between US & China amid rising numbers of infections around the globe dented the hopes of a paced economic recovery. During the week, gold prices showed a mixed trend, on the back of recovery in the Dollar over rising demand from banks and encouraging U.S. employment data. Inventors also turned cautious on the bullion commodity ahead of the ECB decision, making dollar bullish and gold expensive for other currency holders.
On the retail front, physical gold dealers were forced to offer discounts for a fourth straight week in India as the precious metal remained unattractive for most buyers. In India, 24-carat bullion per 10 gram in the national capital traded at Rs 54,400. Price of 24-carat gold stood at Rs 53,360 per 10 gram in Chennai. In Mumbai and Kolkata, the rate for 24-Carat gold stood at Rs 50,460 and 53,110, respectively.
Gold price falls to Rs 51,250, silver rates at Rs 67,711
Anuj Gupta , DVP- Commodities and Currencies Research, Angel Broking said, " Widening impact of the pandemic on the global economy continued to boost the demand for the safe haven, Gold. Stalling U.S. employment growth and increase in permanent job loss last month weighed on the market sentiments in turn denting hopes of a paced economic recovery. Geopolitical tension in the Middle East may also support the bullions. On the back of increased demand for safe heaven we are recommending buy in gold and silver."
On gold futures trading, he added, "As for today traders can go for buy in gold at Rs 51,200 levels with the stop loss of Rs 50,900 levels for the target of 51,800 levels. They can also go for buy in Silver at Rs 67,800 levels, with the stop loss of 66,900 levels and for the target of 69,300 levels. In the Bullion index Bulldex traders can also go for buy at 16100 with the stop loss of 15950 and for the target of 16400."
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