Gold and silver prices in India edged higher today after a sharp fall in the previous session. On MCX, gold futures rose 0.7% to ₹51870 per 10 gram while silver futures gained 0.8% to ₹69300 per kg. In the previous session, gold futures had tumbled 1% or about ₹500 while silver had slumped 1.5% or ₹1050 per kg. Gold has traded in a range after hitting record highs of ₹56200 last month.
“MCX gold in tandem with Comex gold advanced ahead of this weeks’ monetary policy meet by the Fed. Investors are also monitoring key developments into the race of vaccine to fight virus. The Fed will meet on 15-16th September but the market does not expect the policy makers to change guidance is on how long the rates will stay near zero.
Still it will be an important event. The US dollar has continued to drift lower hence the outlook for the yellow metal in intraday is positive,” said Jigar Trivedi, Research Analyst- Commodities Fundamental, Anand Rathi Shares & Stock Brokers on Gold.
In global marketss, gold edged higher today, helped by a weaker dollar and expectations that the U.S. Federal Reserve will reiterate its dovish monetary policy stance this week Spot gold was up by 0.1% at $1,960.58 per ounce.
Gold investors also remained cautious ahead of US Federal Reserve’s monetary policy decision due later this week.
Asian equity markets were mostly higher while US futures pointed higher as hopes of a coronavirus vaccine were rekindled after AstraZeneca resumed its phase-3 trial. Also, Pfizer Inc. Chief Executive Officer Albert Bourla said it’s “likely” the US will deploy a Covid-19 vaccine to the public before year-end.
The dollar index slipped against against its rivals. A weaker greenback makes gold cheaper for holders of other currencies.
Gold traders will focus on U.S. central bank’s two-day policy meeting scheduled on September 15-16.
From the start of this year, gold prices in India are up about 30% tracking a global rally amid unprecedented stimulus unleashed by central banks and governments across the world.
Amid directionless trade in gold, investors moved into sidelines. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.4% to 1,248.00 tonnes on Friday.
Back in India, gold dealers in India offered discounts for a fourth straight week as demand took a further hit due to the start the ‘Shradh’ period, which is considered inauspicious to buy gold and other assets.
Gold prices in India, the second-biggest buyer after China, include 12.5% import duty and 3% GST.