Gold, Silver Prices Rise On Safe Haven Demand Ahead Of Fed Chief’s Speech


Gold futures for delivery in October rose as much as 0.6 per cent.

Gold, Silver Price Today: Gold futures for delivery in October rose as much as 0.6 per cent to hit an intraday high of Rs 47,519 per 10 grams on the Multi Commodity Exchange on the back of price rise in international markets. In international markets gold prices rose as an increasingly deteriorating security situation in Afghanistan spurred safe-haven demand, though investors were largely focused on Fed chief Jerome Powell’s speech for guidance on stimulus tapering plans. Back home, in spot market, fine gold with 24 carat purity was priced at Rs 47.350 per 10 grams, according to India Bullion & Jewellers Association.

Gold with 995 purity was priced at Rs 47,160, 916 purity gold was being sold at Rs 43,373, 750 purity gold was priced at Rs 35,513 and 585 purity gold was being retailed at Rs 27,700 per 10 grams, according to IBJA.

“COMEX gold trades marginally higher near $1800/oz after a 0.2 per cent gain yesterday. Gold trades higher supported by safe haven buying amid increasing tensions relating to Afghanistan following attacks at Kabul airport. Mixed economic data from major economies and rising virus cases has also lent support. However, weighing on gold price is recovery in US dollar amid some hawkish Fed comments, weaker investor interest and drop in China’s gold imports. Gold may continue to trade firm amid risk aversion in the market and a fall may come only if Fed Chairman sound too hawkish,” said Ravindra Rao, head commodity research at Kotak Securities.

Investors now await Jerome Powell’s remarks at the Jackson Hole, Wyoming, symposium at 7:30 pm for any hints about when the Fed will begin tapering its asset purchasing programme.

Silver price also edged higher on the MCX as silver futures for delivery in September rose as much as 0.7 per cent to trade above important psychological level of Rs 63,000 per kilogram. In spot market, silver was priced at Rs 63,230 per kilogram.

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