Gold and silver prices boosted on Monday as bleak global growth prospects climbed the safe-haven assets’ appeal. Gold was steady as the dollar weakened after ECB kept rates unchanged. U.S. jobless claims remained at elevated levels, increasing fears of a slower global economic rebound from the coronavirus crisis. Weak employment growth and gain in permanent job loss dented hopes of a paced economic rally.
On MCX (Multi Commodity Exchange), gold traded higher, tracking international commodity markets. Gold October Futures boosted Rs 61 and settled at Rs 51,380 after reaching an intraday high of Rs 51,599 against the previous close of Rs 51,319 per 10 grams. MCX gold futures currently trade above Rs 4,811, lower than the all-time high of Rs 56,191 per 10 grams, reached on August 7. On MCX, gold has boosted 41.5% to an all-time high since the beginning of 2020.
Silver September Futures increased by Rs 126 and reached Rs 68,050 per kg after they hit an intraday high of Rs 68,500 per kg. On August 7, Silver futures reached an all-time high of Rs 77,949.
Silver decreased by 0.3% to $26.68 per ounce
In the international spot market, the yellow metal and silver stayed positive momentum helped by a weak dollar. Spot gold remained intact at $1,948 per ounce. Comex gold was trading up 0.45% at $1,946 per ounce, while U.S. gold futures stood at $1,948. Significantly, silver dropped 0.3% to $26.68 per ounce.
On the retail front, physical gold dealers were forced to offer discounts for a fourth week in India as the precious metal was unattractive for most buyers.
In India, 24-carat bullion per 10 grams in the national capital traded at Rs 54,400. The price of 24-carat gold was at Rs 53,360 per 10 grams in Chennai. In Mumbai, 24-Carat gold was at Rs 50,460, while in Kolkata, 24-Carat gold was at Rs 53,110.
According to Anuj Gupta, DVP-commodities, and Currencies Research, Angel Broking reported: “Widening impact of the crisis on the global economy continued to raise the demand for the safe-haven, gold. Stalling U.S. employment growth and the boost in permanent job loss last month weighed on the market sentiments, denting hopes of a paced economic rally. Geopolitical tension in the Middle East can also support billions. On the back of boosted demand for safe-haven, we are recommending a buy-in gold and silver.”
