Gold and silver prices rose Friday, reflecting gains in global markets as mounting concerns about the spread of the Delta variant of the coronavirus and its impact on the economic recovery soured risk sentiment and demand for safe-haven assets fueled. However, gains were limited by the stronger dollar against other currencies. Gold futures for delivery in October rose a whopping 0.37 percent, reaching an intraday high of Rs 47,344 per 10 grams. In the spot market, fine gold of 24 karat purity was priced at Rs 47,280 per 10 grams, according to India Bullion & Jewelers Association (IBJA).
Gold with a purity of 22 karats cost Rs 45,670 per 10 grams, 18 karat gold sold for Rs 37,820 and 14 karat gold sold for Rs 31,440 per 10 grams, according to IBJA.
COMEX gold is trading marginally higher near $1786/oz after dropping 0.1% yesterday. Gold is range tied as safe haven buying support amid concerns over rising virus cases, heightened geopolitical tensions , slowdown in China and uneven recovery in the US are being countered by increasing expectations about the Fed’s monetary tightening and weaker investor interest, as evidenced by ETF outflows. Gold may remain sideways to positive as safe-haven buying support counters the Fed’s monetary tightening debate, but we need a breakthrough beyond $1800/oz for sustained,” Ravindra Rao, says Head of Commodity Research at Kotak Securities in a statement.
Gold traders are likely to look forward to Fed Chair Jerome Powel’s speech on the economic outlook. Fed Chair Jerome Powell will speak on “the economic outlook” at the Jackson Hole, Wyoming symposium next week, where he is expected to outline a clearer roadmap for the central bank’s winding down plans.
Minutes from the Fed’s policy meetings in July showed officials were largely on board to ease bond buying this year if the economy continues to improve as expected.
At home, silver prices also rose higher. Silver futures for delivery in September rose a whopping 0.28 percent, reaching an intraday high of Rs 62,305 per kilogram. In the spot market, silver was sold for Rs 63,341 per kilogram.