Monday morning witnessed a slight increase in the gold price for the third straight session in a heavier sell-off in the international markets. The precious metal bounced back marginally abroad. It remained stable at around $1940 per ounce in the global spot market. The market also witnessed silver prices on the same platform reaching $27 per ounce.
The prices for gold and silver increased as the price of the USD dropped after remaining high on the back of the job data of the United States. The trend also raised fears of slow economic recovery after the pandemic of COVID-19. Investors were, however, optimistic about the safe asset as an increasing number in the US and other countries re-imposed anti-disease controls to disturb businesses.
Gold trading concluded in the global commodity markets at a high tracking. Gold October Futures, on the other hand, got a profit of Rs.68 at 50,746 after it hit an intraday higher price of Rs.50.823 against the last closing price of Rs.50.678 per 10 gram.
MCX gold futures recently traded over Rs.5, 300, which was, however, lower than the lifetime high of Rs. 56,191 per 10gram that hit the market on August 7. The yellow metal has increased by 41.5 percent to a lifetime high since January 2020. Silver September Futures benefited by Rs.851 to Rs. 68,117 per kilogram on September 5, after they reached a high price of Rs. 68,398 per kilogram. Silver Futures touched a lifetime high of Rs. 77,949 a month ago.
The international spot market continued with positive momentum though USD was rising rapidly. Spot gold, at $1953.53 per ounce, gained up to 0.2 percent dropped to $1961 on Friday. Comex gold traded an intraday high at USD 1931 per ounce and rose to 0.40 percent. US Gold Futures, on the other hand, got a profit up to 0.4 percent t0 USD1, 941.10. The silverfish metal gained to 0.2 to USD 26.84 per ounce.
Apart from that, a weak drive in the equity market also led the bullion to recover from its latest fall last week. Both the local and international equity markets continued to trade significantly lower today. Moreover, the investors had a weak stance because of increased anxiety as to slower recovery from the COVID-19 pandemic.
Stock markets in Asian had a mixed trend on Monday. It tracked losses in Wall Street that observed its biggest weakly decline in more than sixty days on Friday. Shanghai, Hong Kong, Tokyo retreated their benchmarks, whereas Sydney and Seoul were successful in gaining more profit.
In the Indian gold market, 24-carat bullion per 10 gram traded at Rs.54, 130. The 24-carat gold continued at Rs. 50,520 per 10 gram in Mumbai, while the rate of 24-carat yellowish metal stood at 53,920 in Kolkata.
Technically, stable USD rates and hope that the deadly episode of a pandemic may come under control will continue to strike the safe-haven asset. The optimism of more economic incentive measures and increasing trade tensions between China and the US would lead to firm support to the gold prices.