Gold, Silver prices in India on October 1: Gold price gained marginally in the Indian commodity market on Thursday after the recent volatility, tracking positive cues from overseas. Precious metals surged amid weak dollar following signs of progress in negotiations to roll out further US stimulus measures.
On the Multi Commodity Exchange, Gold October Futures hit an intraday high of Rs 50,385 against the previous close of Rs 50,334 per 10 gm.
Although gold futures trades above the psychological level of Rs 50K, the bullion is almost Rs 6,000 lower than its lifetime high of Rs 56,191 per 10 gm hit last month.
Silver September Futures touched an intraday high of Rs 60,400 per kg. Silver Futures hit a lifetime high of Rs 77,949 on August 7.
Overseas, gold and silver held steady after gaining following a sharp rise in the earlier session, aided by a weak dollar index that slipped 0.2%. Spot gold climbed 0.3% to $1,891 after falling to a one-week low yesterday. Comex gold was trading flat at $1,888 per ounce, while US gold futures were 0.1% higher at $1,897. Silver, on the other hand, eased 0.2% to $27.03 per ounce. Traders said stormy start to US Presidential debate and concerns over stimulus drove investors edgy and kept gains checked.
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Gold has risen over 25% this year, supported by unparalleled monetary stimulus from major central banks across the globe to revive the coronavirus induced economic downturn.
Viewed as a hedge against inflation and currency debasement, the bullion has risen substantially this year amid rising worries about the sluggish pace of economic recovery due to the coronavirus pandemic. Worldwide, there were 341 lakh confirmed cases and 10.18 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 63-lakh mark and the death toll from COVID-19 infections rose to 0.98 lakh, as of today.
On the retail front, physical 24-carat bullion per 10 gram in the national capital gained to Rs 53,680. Price of 24-carat gold stood at Rs 52,740 per 10 gram in Chennai. In Mumbai and Kolkata, the rate for 24-Carat gold gained back to Rs 49,960 and 52,650, respectively.
Gold price falls amid strong dollar; silver rates at Rs 61,200
Technical outlook
Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking said,"Gold headed towards its worst month in four years as an extension of the rally in the U.S. Currency kept the Dollar-denominated Gold under pressure. China's industrial activities also gained momentum reflecting the improvement in overseas demand which further boosted the risk appetite amongst investors. U.S. Treasury Secretary Steve Mnuchin and House Speaker Nancy Pelosi working on bridging the gap raised hopes of additional stimulus aid by U.S. limited the fall in Gold prices. Moreover, the alarming increase in the Covid-19 cases dampened hopes of the global economic recovery also levied some support for the yellow metal. Easing Dollar and hopes over additional stimulus might levy some support for the yellow metal. On the MCX, gold prices are expected to trade higher in today's session.
He added," As for today, traders can go for buy-in gold at Rs 50,300 levels with the stop loss of Rs 50,000 levels for the target of 50,900 levels. They can also go for buy-in Silver at Rs 60,000 levels, with the stop loss of 59,200 levels and for the target of 61,500 levels."
"Going forward, clarity on fiscal stimulus in the US, control on the number of COVID cases worldwide, or a vaccine will guide gold prices", said Nish Bhatt, Founder & CEO, Millwood Kane International.
On Gold's near term outlook, Hareesh V, Geojit's head of commodity research said," Even though a strong US dollar and optimism over COVID-19 vaccine is weighing the safe-haven demand of gold, increasing US-China tensions and hopes of fiscal stimulus measures continue to offer lower-level support to the commodity.