Gold and silver prices boosted today in Indian markets however they remain sharply lower this week. On Multi Commodity Exchange, gold futures rose by 0.35% and settled ₹50,339 per 10 gram while silver futures boosted 0.38% and touched ₹62,780 per kg. Remarkably, gold futures dropped 0.6% in the previous session, which equals or ₹310 per 10 gram, while silver futures fell 1% or ₹600 per kg. Moreover, the recent decline in prices, as well as the Christmas time, is likely to lift the gold demand in Idia. Dhanteras will be celebrated today while Diwali on Saturday. The yellow metal prices have witnessed a sharp correction week in India. It decreased by approximately ₹2,000 per 10 gram this week.
According to Ahammed MP, Chairman at Malabar Gold & Diamonds, The enhanced investment value of Gold will also drive the gold buying ritual on this auspicious occasion in this unprecedented time. Besides, they said that the purchasing appetite of consumers is expected to go up throughout Dhanteras and Diwali.
Moreover, in global markets gold prices increased today as the worldwide stock market rally of coronavirus vaccine optimism showed signs of stalling. Gold rose by 0.3% and settled at $1,871.03 an ounce. Besides, a boost in coronavirus infection across the world, as well as a weaker U.S. dollar, helped Gold at lower levels.
Moreover, the U.S. dollar index increased by 0.06%, making the yellow metal cheaper for holders of other currencies. Besides, among other precious metals, silver dropped 0.4% and settled at $24.16 per ounce while platinum was traded at $865.
Additionally, gold traders will be intensely watching comments from European Central Bank President Christine Lagarde and Federal Reserve Chairman Jerome Powell. Significantly, they are scheduled to speak at an online ECB Forum.
Gold ETF declined to 1,240.74 tonnes
According to analysts, mixed ETF activity also indicates a lack of confidence in investors. Holdings of SPDR Gold Trust, the world’s biggest gold-backed exchange-traded fund or gold ETF, dropped 0.72% and settled at 1,240.74 tonnes on Wednesday.
Furthermore, Gold may struggle for direction as market players counter-current worsening Covid-19 situation against the hope of a vaccine in the following months and also as marker players assess the probability of a massive stimulus from the U.S. According to Kodak Securities, the general bias may be on the upside amid persisting virus risks and loose monetary policy stance of leading central banks.
Additionally, investors who want to invest in the precious metal this Dhanteras also have the option of investing in sovereign gold bonds what are currently open for subscription. Besides, the issue price for Sovereign Gold Bond Scheme has been fixed at ₹5,177 per gram of Gold.