Gold and silver prices today edged higher in Indian markets, following the uptick in global rates. On MCX, gold futures were up 0.4% to ₹49,049 per 10 gram while silver rose 0.7% to ₹72,622 per kg.
In the previous session, gold had risen 0.62% while silver had gained 0.51%. Concerns about inflation, subdued US bond yields and US dollar and renewed coronavirus surge in many parts of the world has helped gold rebound in international markets.
On the other hand, weighing on price are concerns about India’s consumer demand as virus related restrictions impacts domestic activity, says Kotak Securities.
In March, gold prices in India had hit a near year low of about ₹44,000 per 10 gram. Despite the recent recovery in prices, gold rates are still down significantly from last year’s high of ₹56,200.
In India, both gold and silver prices have been affected due to the rapid spread of coronavirus. Usually, the metal prices in the country are determined by keeping international prices as the basis. Other than that, various factors such as the value of the rupee against the dollar and global demand play a key role in determining the trends observed in the rate of precious metals.
In international markets, gold edged past key $1900 levels, supported by a weak dollar, making gold cheaper for other currency holders. Also supporting the precious metal was subdued US bond yields, reducing the opportunity cost of holding non-interest bearing gold. The dollar index was near 4-month low of 89.605 while benchmark US Treasury yields were near two-week low of 1.57%.
Gold added 0.4% to $1,906.16 an ounce while silver was steady at $27.99 and platinum gained 0.8% to $1,200.69.
“While gold prices stay above $1890 there are chances to continue the recovery upticks for the day. Anyhow, immediate intraday resistance is placed at $1925. A direct drop below $1845 would weaken the sentiment, but major downside reversal point is seen at $1810,” domestic brokerage Geojit said in a note.
MCX Gold has resistance at ₹49,400 and support at ₹47,900, the brokerage added.
Gold traders will be watching US initial jobless claims, GDP, durable goods, pending home sales data to be released later this week. Asian equity markets were mostly higher today while Bitcoin climbed toward $40,000 in a partial recovery from last week’s crypto rout.
“However, supporting price is diverging virus situation in US, Europe and Asia, loose monetary policy stance of major central banks and pickup in investor buying,” it added.
Gold and Silver prices for major cities in India
New Delhi— GOLD (per 10 gram, 22Ct)-Rs 46,930,,SILVER (per kg)-Rs 72,700
Mumbai— GOLD (per 10 gram, 22Ct)-Rs 46,000,,SILVER (per kg)-Rs 72,700
Kolkata—- GOLD (per 10 gram, 22Ct)-Rs 47,880,,SILVER (per kg)-Rs 72,700
Chennai —-GOLD (per 10 gram, 22Ct)-Rs 45,960,,SILVER (per kg)-Rs 76,200
Bangalore—- GOLD (per 10 gram, 22Ct)-Rs 45,600,,SILVER (per kg)-Rs 72,700