Gold prices maintained the bullish streak by rising for the second straight session on Tuesday as the dollar weakened ahead of US Federal Reserve’s monetary policy meeting. Despite the metal options rising for two days, Gold remains significantly below record high prices of Rs 56,191 per 10 gram, hit on August 7, 2020.
Gold prices in India today edged higher by 0.61% to Rs 51,687 per 10gm on MCX futures. Silver futures on MCX also witnessed a rise by 0.78% to Rs 69,600 per kg. In the previous session on Monday, gold futures say a rise by 0.75% per 10 gram while silver had jumped 1.6%. Silver Futures hit a lifetime high of Rs 77,949 on August 7.
“Gold has witnessed mixed trade reflecting choppiness in equity markets and US dollar index. We may see directionless trade continuing unless either side of $1900-2000/oz range is broken,” Kotak Securities stated.
Escalating tensions between US & China coupled with rising number of coronavirus cases around the globe dented hopes of a near economic recovery. Bleak global growth prospects and financial uncertainty boosted the demand for safe-haven assets.
Religare Broking said, ” Gold jumped as the dollar weakened after the European Central Bank kept its policy unchanged and US jobless claims held at high levels, dimming hopes of a quick economic recovery from the effects of the coronavirus pandemic. Last week, gold prices gained 0.53% in international markets, whereas prices were up 1.26% on MCX.”
“Widening impact of the pandemic on the global economy continued to boost the demand for the safe haven, Gold. Geopolitical tension in the Middle East may also support the bullion. On the back of increased demand for safe haven, we are recommending a buy in gold and silver.”, Anuj Gupta, DVP- Commodities and Currencies Research, Angel Broking stated.
Globally, gold and silver was stable following a sharp rise in the earlier session. Spot gold was flat at $1,956.17 per ounce after gaining 1% on Monday. US gold futures gained 0.1% at $1,966.40. Silver saw a decline by 0.1% to $27.12 per ounce.
