Gold and silver prices in India rose today after a sharp drop in the previous session. On MCX, gold futures rose 0.4% to ₹51,532 per 10 grams, while silver futures gained 0.6% to ₹68,350 per kg. In the previous session, gold futures had fallen by 1% or about ₹500 while silver had plummeted 1.5% or ₹1050 per kg. Gold has traded in a range after hitting all-time highs of ₹56200 last month.
In global markets, gold prices were flat today as optimism around a potential COVID vaccine whetted appetite for riskier assets. Spot gold was flat at $ 1,941.11 per ounce. Among other precious metals, silver fell 0.3% to $ 26.68 an ounce, while platinum gained 0.4% to $ 928.61.
Gold investors also remained cautious ahead of the US Federal Reserve’s monetary policy decision to be made this week.
Asian equity markets were mostly bullish, while US futures pointed higher as hopes for a coronavirus vaccine were rekindled after AstraZeneca resumed its phase 3 trial. Pfizer Inc. CEO Albert Bourla said the US is “likely” to roll out a Covid-19 vaccine to the public before the end of the year.
The dollar index fell against its rivals. A weaker dollar makes gold cheaper for holders of other currencies.
Gold traders will focus on the US central bank’s two-day policy meeting scheduled for September 15-16.
Since the beginning of this year, gold prices in India have risen around 30% following a global rally amid unprecedented stimulus unleashed by central banks and governments around the world.
Amid the aimless trade in gold, investors stayed on the sidelines. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.4% to 1,248.00 tonnes on Friday.
Back in India, Indian gold traders offered discounts for the fourth week in a row as demand was hit by the start of the ‘Shradh’ period, which is seen as unfavorable for buying gold and other assets.
Gold prices in India, the second largest buyer after China, include 12.5% import duties and 3% GST. (With contributions from the agency)
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