Gold, Silver Price in India: Domestic gold and silver futures slipped on Thursday amid weakness in the global market as the dollar strengthened after the US central bank promised to keep interest rates low for a long time. The Multi Commodity Exchange (MCX) gold futures fell 1.05 percent to Rs 51,279 during the session (October 5), and the last time it was around Rs 51,495 was around noon. Silver touched close to Rs 67,850, an increase of 1.86 per cent from Rs 67,500 earlier. (Track Gold Futures here)
Globally, Spot goldTrading on Comex, after the Federal Reserve painted a favorable economic recovery picture, refused to come to a higher level for the dollar but declined to offer solid signals on stimulus. It fell 1.39 percent to $ 1,943.10 an ounce. Spot silver fell 2.22 percent to $ 26.87 an ounce. (Also read: Is silver the new gold?)
The dollar index – which measures the dollar against six currencies – gained 0.41 percent during the day.
According to the Mumbai-based industry body India Bullion and Jewelers Association, gold spot at Rs 51,431 per 10 grams and silver Rs 64,821 per kg, excluding GST, when the business starts on Thursday.
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Gold has been one of the most frequent beneficiaries in the financial markets through six months of coronavirus epidemic-led upheaval. (Also read: Gold “Dream Run” Continue: Analyst)
What do analysts say
“Gold weakened as the dollar weakened after the Fed’s decision. The US currency strengthened as there were some new signals from the US central bank, which kept the interest rate unchanged as expected, maintaining an uncertain outlook for the economy and the interest rate. Confirmed again. ” Ravindra Rao, VP-Head Commodity Research, Kotak Securities, said the short-run for a long time but did not discuss any new measures and re-emphasized the need for additional fiscal stimulus.
“Gold choppies can be a witness to trade as market players assess the Fed’s decision. However, the central bank’s vigilance over the economy and commitment to keep interest rates low is generally positive for gold.”