Gold and silver prices edged higher today in Indian markets after a sharp fall last week. On MCX, gold rates were up 0.6% to ₹47004 per 10 gram while silver rose 0.6% to ₹68,789 per kg.
Gold Prices Today Rise
In international markets, gold rates were flat, pressured by a stronger dollar. Spot gold was trading at $1,770.66 per ounce while silver was steady at silver $25.90 per ounce. A stronger dollar index makes gold more expensive for other currency holders.
Gold traders will be watching comments from Fed chief Jerome Power who later in the day is scheduled to speak at an event hosted by the National Community Reinvestment Coalition while Bank of England’s rate decision is due on Thursday. The US April employment report is scheduled on Friday.
Meanwhile, Treasury US Secretary Janet Yellen said on the weekend tamped down concerns, saying that the demand boost from President Joe Biden’s economic plan would be spread over a decade.
Among other precious metals, palladium rose 0.3% to $2,944.19 per ounce, after scaling all time high of $3,007.73 per ounce on Friday.
Meanwhile, in India, physical gold was sold at a discount over official prices last week, the first time in 2021, Reuters reported. Strict restrictions and lockdowns have hurt retail demand in India. Dealers were offering a discount of up to $2 an over official domestic prices, as compared to last week’s premium of $2.
Gold prices in India include 10.75% import duty and 3% GST.
“Gold may remain choppy as US dollar index struggles for direction amid increasing optimism about US economy as well as Fed’s increasing emphasis on keeping interest rate low. We however expect to see buying interest at lower levels owing to loose monetary policy stance of major central banks and persisting virus risks,” Kotak Securities said in a recent note.
(With Agency Inputs)