Gold prices showed marginal rise as on the MCX, yellow metal October futures rose by 0.8 per cent to trade at Rs 47,538 per 10 grams, while silver September futures showed decent growth and rose by 3 per cent to reach Rs 63,585 per kg.
Silver prices performed better than gold prices mainly due to easing of pandemic worries in China.
At the international market, yellow metal rates were trading high as spot prices at COMEX rose by 2 per cent to trade at $1,817 per ounce. Silver prices however traded low as spot silver prices at COMEX stood at $24 per ounce.
Gold ETF holdings continued outflows as holdings at SPDR gold shares fell near their lowest since April last year to 1,002 tonnes from the previous week’s 1,012 tonnes for the week.
On Friday, precious metal prices had rallied after the comments emanating from the American Jackson Hole Symposium. At the same time, bullion prices were supported by weaker dollar and drop in American treasury yields amid a cautious approach sounded off by US Federal Reserve chairman Jerome Powell, who said that though the American economy was on a strong footing, it was still not completely insulated from the impact of the Coronavirus pandemic.
Commenting on gold prices trends, Head of Commodity Research at Kotak Securities Ravindra Rao said, “COMEX gold trades little changed near $1,818 per ounce after a 1.4 per cent gain on Friday. Gold trades near three-week high supported by weakness in US dollar as market players played down Fed’s monetary tightening concerns post comments from Fed Chairman. Also supporting price is increased geopolitical tensions relating to Afghanistan and mixed economic data from major economies and rising virus risks. However, weighing on price is weaker investor interest as is evident from ETF outflows. Gold has rescaled $1,800 per ounce and the momentum has turned positive however mixed factors may keep prices volatile.”