Gold prices rebound today after two-day fall, silver rates rise
Mumbai-India (Nov 26) Gold prices today inched higher, snapping a two-day fall. Buying by local jewellers and higher global prices helped lift domestic gold rates. Gold prices rose by Rs 100 to Rs 31,850 per 10 gram. Gold prices had declined by Rs 200 on Saturday. Tracking gold, silver rates today perked up, gaining Rs 150 to Rs 37,450 per kg amid increased demand from industrial units. Silver rates had slumped Rs 500 on Saturday. Gold of 99.9% and 99.5% purity rose by Rs 100 each to Rs 31,850 per 10 gram and Rs 31,700 per 10 gram, respectively.
Sovereign gold prices also rose by Rs 100 to Rs 24,800 per piece of 8 gram. In line with gold, silver ready advanced by Rs 150 to Rs 37,450 per kg and weekly-based delivery gained Rs 209 to Rs 36,309 per kg. Silver coins continued to be traded at the previous level of Rs 73,000 for buying and Rs 74,000 for selling of 100 pieces.
The gain in the value of the rupee against the US dollar has kept a cap on domestic gold prices. A rise of the rupee against the US dollar brings down the imported cost of dollar-denominated gold.
Gold demand in India, the second biggest gold consumer after China, usually picks up towards the end of the year going into the wedding and festival season. Traders expect the recent fall in domestic gold prices to perk up demand.
In global markets, gold prices remained steady today as investors looked to the G20 meeting this week for signs of a thaw in the China-US trade conflict. Spot gold prices inched 0.1% higher to $1,223.31 per ounce while US gold futures were up about 0.1% at $1,223.8 per ounce.
“People are moving some of their capital into gold at this point of time, given the uncertainties around the pace of rate hikes by the Fed, the US-China trade war... People see gold as a hedge against these uncertainties,” said Brian Lan, managing director at Singapore dealer GoldSilver Central.
However, a stronger dollar capped gains in the price of the yellow metal. The dollar index, which measures the greenback against a basket of six major currencies, was up about 0.1%, as investors sought shelter in safe haven currencies as fears of a global growth slowdown and US-China trade tensions sapped risk appetite.
Gold traders will also keep a watch on the minutes of November 7-8 policy meeting of US Federal Reserve’s Federal Open Market Committee. The minutes will be released this week.
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