Over the previous two sessions, gold and silver prices witnessed a large consecutive drop. Today, both their prices stepped higher, with a recovery in global rated helping them rebound in Indian markets. MCX revealed that October gold futures were up 0.4 per cent to Rs 52,345 per 10 gram while silver futures climbed about Rs 1,000 to Rs 68579 per kg. The last two sessions saw gold slump a Rs 1,500 per 10 gram while silver around Rs 1,650 per kg. Gold prices in India have continued to be choppy since hitting record highs of Rs 56,191 per 10 gram. Meanwhile, in the international market scenario, gold prices edged higher, boosted by a weaker US dollar, making the yellow metal cheaper for holders of other currencies. Spot gold was up 0.4% at $1,949.83 per ounce. Among other precious metals, silver gained 0.6 per cent to $27.38 per ounce while platinum climbed 0.5 per cent to $922.24.
Unemployment concerns in the US caused fears of a slower global economic recovery, as the dollar index fell 0.2 per cent as opposed to its rivals. Latest data showed the number of Americans filing a new claim for unemployment benefits rose unexpectedly back above the 1 million marks last week. On Wednesday, the minutes of Federal Reserve’s July 28-19 meeting, indicated policymakers being concerned that an economic recovery faced a highly uncertain path.
Analysts predict gold prices to remain choppy in the near term but say that buying interest is likely to emerge at lower levels amid persisting challenges to the US and global economy and a generally weaker outlook for US dollar.
“While gold is struggling for direction, prices remain supported by increasing virus cases which has forced countries to take restrictive measures threatening economic recovery. Increased US-China tensions have also kept gold prices supported,” Kotak Securities said in a note. China on Thursday confirmed plans to talk with US officials soon to review progress on their preliminary trade deal but earlier this week, President Donald Trump said he cancelled those plans because he’s unhappy with the Asian nation’s role in the Covid-19 pandemic.
Meanwhile, the stalemate in US fiscal stimulus talks has added to uncertainty about the health of the US economy and may keep a check on the US dollar, the brokerage added.