Gold and silver prices inched higher on Friday mirroring gains in global markets as rising concerns over the spread of coronavirus Delta variant and its impact on economic recovery soured risk sentiment and spurred demand for safe haven assets. However, the gains were capped on the back of stronger dollar against other currencies. Gold futures for delivery in October rose as much as 0.37 per cent to hit an intraday high of Rs 47,344 per 10 grams. In spot market, fine gold with purity of 24 carat was priced at Rs 47,280 per 10 grams, according to India Bullion & Jewellers Association (IBJA).
Gold with purity of 22 carat was priced at Rs 45,670 per 10 grams, 18 carat gold was retailed at Rs 37,820 and 14 carat gold was being sold at Rs 31,440 per 10 grams, according to IBJA.
“COMEX gold trades marginally higher near $1786/oz after a 0.1% decline yesterday. Gold is range bound as support from safe haven buying amid worries about rising virus cases, increased geopolitical tensions, slowdown in China and uneven recovery in US is countered by increasing expectations about Fed’s monetary tightening and weaker investor interest as is evident from ETF outflows. Gold may remain sideways to positive as support from safe haven buying counters Fed’s monetary tightening debate however we need a break past the $1800/oz for a sustained,” Ravindra Rao, Head Commodity Research at Kotak Securities said in a statement.
Gold traders are likely to watch out for Fed Chairman Jerome Powel’s speech on the economic outlook. Fed Chair Jerome Powell will speak on “the economic outlook” at next week’s Jackson Hole, Wyoming symposium, where he is expected to lay out a clearer roadmap on the central bank’s taper plans.
Fed’s July policy meeting minutes showed officials were largely on board to start easing bond purchases this year if the economy continues to improve as expected.
Back home, silver prices also edged higher. Silver futures for delivery in September advanced as much as 0.28 per cent to hit an intraday high of Rs 62,305 per kilogram. In spot market, silver was being retailed at Rs 63,341 per kilogram.