Gold and silver prices struggled today in Indian markets amid low world rates. On MCX, December futures fell 0.15% to ₹50.550 per 10 grams, while silver futures fell 0.12% to ₹61,868 per kg. In the previous session, gold prices rose 0.1%, recovering from the low of the day of ₹50,030 while silver had gained 1%. After falling from the highs of August 7, ₹56,200 per 10 grams, gold has been volatile in recent sessions. Silver has also been corrected from its maximum ₹80,000 per kg, also hit in August.
In global markets, gold prices were stable after rising to a two-week high in the previous session. Spot gold was trading at $ 1,912.49 an ounce, while it hit $ 1,918.36 on Monday, its highest level since Sept. 22.
Global risk sentiment improved after US President Donald Trump returned to the White House on Monday after a three-night stay at the hospital where he was being treated for COVID-19. For gold, a weaker dollar helped offset the pressure of upbeat risk sentiment.
Among other precious metals, silver was up 0.1% to $ 24.37 an ounce, platinum was up 0.1% to $ 897.99, while palladium was down 0.2% to $ 2,356.85 .
Most Asian stock markets today posted the highest overnight gains of their US peers in Trump’s health update and amid optimism that lawmakers will move closer to providing more stimulus. The dollar remained under pressure, falling 0.1% against its rivals. Risk sentiment improved amid signs of progress in President Trump’s health and increased efforts to end US fiscal stimulus, analysts say.
Speaker of the United States House of Representatives Nancy Pelosi and Secretary of the Treasury Steven Mnuchin are ready to speak again today on economic relief from the coronavirus, continuing their work toward an agreement on the legislation.
Gold traders will be closely watching Fed Chairman Jerome Powell’s remarks as he delivers the keynote address at a conference earlier today. Minutes from the Fed’s September 15-16 meeting will be released on Wednesday.
The US dollar may remain a key price driver for gold in the near term with a focus on the US economy, Kotak Securities says in a note.
“Concerns about the health of the US economy weighed on the US currency as well. Mixed US economic data, rising virus cases, and the delay in additional stimulus measures have kept concerns about the health of the economy. American, “the brokerage said.
The buying rhythm of gold ETFs remained uneven. “ETF flows are usually very price sensitive unless we see a sustained recovery in prices we may not see a lot of buying interest,” Kotak Securities said. (With contributions from the agency)
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