Gold Price In India: Domestic gold futures edged higher to touch the Rs 50,600 mark on Thursday, tracking gains in global benchmark rates on safe-haven buying driven by surging coronavirus cases and the approaching US elections. Multi Commodity Exchange gold futures - due for a December 4 expiry - rose by Rs 120 or 0.24 per cent to touch the Rs 50,615 mark at the strongest level recorded during the session. However, silver futures declined to as low as Rs 59,400, down Rs 738 or 1.23 per cent from its previous close. (Also Read: Is Silver The New Gold?)
At 3:10 pm, MCX gold futures traded 0.11 per cent higher at Rs 50,550 while silver futures were down 0.53 per cent at Rs 59,820.
Globally, Comex gold climbed to as high as $1,885.10 per ounce on Thursday compared to its previous close of $1,879.20 per ounce. Some investors took advantage of the previous day's slide to a one-month low to go long on the yellow metal.
Silver hovered near the $23 per ounce mark, stuck in a tight range.
The dollar index - which gauges the greenback against six other currencies - was last seen trading 0.14 per cent higher. The rupee ended 0.32 per cent lower at 74.11 against the dollar.
Domestic spot gold opened at Rs 50,710 per 10 grams on Thursday, and silver at Rs 60,087 per kilogram - both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
What Analysts Say
Ravindra Rao, VP-head commodity research, Kotak Securities:
"Weighing on gold is uncertainty about more stimulus in the US and recovery in the dollar index from recent lows. However, exchange traded fund inflows along with a rise in Chinese imports and safe-haven buying, amid rising coronavirus cases and mixed economic data from major economies, are supporting the price."
"Gold may remain choppy as equities and US dollar are likely to trade mixed ahead of US elections however general bias may be on the upside on back of safe haven buying amid rising virus cases and uneven recovery."
Navneet Damani, VP-commodities research, Motilal Oswal Financial Services:
”Gold was a little changed trading near a one-month low hit in the previous session, as fears of the economic impact from a fresh wave of the novel coronavirus in Europe kept the dollar around a one-week high. Leaders of France and Germany ordered their countries back into lockdown, as a massive second wave of infections threatened to overwhelm Europe before the winter."
"Focus right now is on the US Presidential election although increasing virus numbers is again posing a threat to the global growth... Today market participants will keep an eye on the European Central Bank policy meeting scheduled later today and also on the Q3 GDP data expected from the US, which could keep the volatility high.”