Domestic gold and silver futures fell on Friday tracking global spot rates. Multi Commodity Exchange (MCX) gold futures (due for an October 5 delivery) declined by ₹ 494 – or 0.95 per cent – to close at ₹ 51,280, and silver futures (December 4) settled at ₹ 67,926, down ₹ 1,065 – or 1.54 per cent – from their previous close. The gold and silver contracts had fallen to as low as Rs 51,224 and ₹ 67,613 respectively during the session.
In the international market, precious metal prices edged lower on a lack of any further stimulus from the European Central Bank and the US government. Spot gold (Comex) was last seen trading 0.83 per cent lower at $1,947.90 per ounce, while silver was down 1.59 per cent at $26.86 per dollar.
The US dollar index – which gauges the greenback against six currencies – steadied a day after halting days of strengthening. Gold is often considered a hedge against inflation and currency debasement.
gold settled at ₹ 51,441 per 10 grams on Friday, and silver at ₹ 65,424 per kilogram, excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
Gold has been one of the most consistent gainers through the six months of coronavirus pandemic-led turmoil in financial markets. Some analysts say gold is still in a bullish trend from a long-term perspective due to the coronavirus pandemic.
What Analysts Say
“Gold has witnessed mixed trade in last few sessions owing to volatility in the US dollar index and US equity market, but managed to hold within a broad range of $1,900-2,000/oz,” said Ravindra Rao, VP-head commodity research, Kotak Securities.
“Gold may witness choppy trade as the US dollar and equity markets struggle for direction however general bias may be on the upside as increasing challenges for global economy may increase its safe haven appeal,” he added.