Gold and silver prices in India rose today amid a sell-off in global stocks. On MCX, October gold futures rose 0.3% to ₹50.911 per 10 grams, while silver futures advanced 0.23% to ₹67,080 per kg. Gold prices had fallen for three days in a row, before today. In the previous session, gold futures had fallen 0.12% per 10 grams, while silver had fallen around 2% or ₹1,300 per kg. Gold prices in India have drastically corrected from all-time highs of ₹56,200 arrived on August 7 and since then prices have remained volatile.
On world markets, gold prices rose as falling world stocks helped boost demand for the yellow metal’s safe haven. But a stronger US dollar limited gains. Gold traders are awaiting the release of the US Non-Farm Payroll data for August, to be released later today.
Spot gold rose 0.4% to $ 1,937.84 an ounce. The head of the Chicago Federal Reserve on Thursday called on Congress to deliver more fiscal stimulus, noting that the United States’ monetary policy would be further relaxed. Lower interest rates reduce the opportunity cost of holding non-performing bullion.
Among other precious metals, silver gained 1.1% to $ 26.92 an ounce, while platinum was up 0.6% to $ 894.97.
The sixth tranche of this year’s gold sovereign bonds, which opened for subscription on Monday, closes today. The RBI is issuing gold bonds to ₹5,117 per gram, while those who apply online and pay online get a ₹50 per gram.
Analysts say that sovereign gold bonds are an effective way to invest in non-physical gold if investors are thinking of holding it to maturity. Gold bonds have a maturity period of eight years. Investors do not have to worry about storing gold as it is in demat form, while there is no GST tax that a buyer must pay if they buy physical gold. Additionally, a buyer receives an annual interest payment of 2.5%. (With contributions from the agency)
.
