Gold and silver rose today in the Indian markets, although they remain very low this week. On MCX, gold futures rose 0.35% to ₹50,339 for 10 grams, while silver futures gained 0.38% to ₹62,780 per kg. In the previous session, gold futures had fallen 0.6% or ₹310 for 10 grams while silver rates had fallen 1% or ₹600 per kg. The recent drop in prices and the festive season are expected to boost demand for gold in India. Dhanteras will be celebrated today while Diwali on Saturday. In India, gold prices have seen a sharp correction this week, falling around ₹2,000 for 10 grams this week.
“Amidst pent-up customer demand in the market, the revival of the economy and positive consumer sentiment, Dhanteras will kick off a decent shopping season for jewelers across the country. The gold buying ritual in this auspicious The occasion will also be driven by the enhanced investment value of gold at this unprecedented time. Customers’ buying appetite is likely to increase during Dhanteras and Diwali, “said Ahammed MP, Chairman of Malabar Gold & Diamonds.
On world markets, gold prices rose today as the global stock market rally due to optimism from covid vaccines showed signs of stagnation. Gold was at $ 1,871.03 an ounce, up 0.3%. An increase in covid cases around the world and a weaker US dollar supported gold at lower levels.
The US dollar index was down 0.06%, making gold cheaper for holders of other currencies. Among other precious metals, silver fell 0.4% to $ 24.16 an ounce, while platinum held steady at $ 865.
Gold traders will be watching for comments from European Central Bank President Christine Lagarde and Federal Reserve Chairman Jerome Powell, who are scheduled to speak at an online ECB forum.
Mixed ETF activity also shows a lack of confidence in investors, analysts say. Holdings of SPDR Gold Trust, the world’s largest gold-backed gold ETF or exchange-traded fund, fell 0.72% to 1,240.74 tonnes on Wednesday.
“Gold may fight for direction as market players counteract the current worsening virus situation in the face of a greater possibility of a vaccine in the coming months and also as market players assess the viability of a large stimulus. However, the overall bias may be to the upside amid persistent virus risks and the loose monetary policy stance of major central banks, “Kotak Securities said in a note.
Investors who want to invest in gold in these Dhanteras also have the option of investing in gold sovereign bonds that are currently open for subscription. The issue price of the 2020-21-Series VIII sovereign gold bond scheme has been set at ₹5.177 per gram of gold. (With contributions from the agency)
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