Gold, Silver Futures Rangebound Amid Volatile Trade
Gold, Silver Price In India: Domestic gold and silver futures fluctuated between gains and losses in a volatile session on Tuesday, amid a continued drop in global equities amid fears of a second wave of COVID-19 infections. Multi Commodity Exchange (MCX) gold futures (due for settlement on October 5) traded in a more than Rs 550 range, between Rs 50,129 and Rs 50,686, as against their previous close of Rs 50,471. Silver futures (December 4) quoted between Rs 59,570 and Rs 61,990 in a wild session compared to their previous close of Rs 61,316. (Track Gold Futures Here)
In the international market, gold futures moved within a range of $1,898.90-1,925.50 per ounce, and silver quoted at $23.91-25.30 per ounce in a volatile session.
The dollar hit a more than one-month high, while investors remained doubtful over additional stimulus measures to aid the coronavirus-hit economy ahead of speeches from Federal Reserve officials this week.
Back home, spot gold closed at Rs 50,683 per 10 grams on Tuesday, and silver at Rs 59,959 per kilogram, excluding GST, according to Mumbai-based India Bullion and Jewellers Association, an industry body.
Gold has been one of the most consistent gainers through the six months of coronavirus pandemic-led turmoil in financial markets.
Typically, precious metal prices share an inverse relationship with capital markets, wherein any improvement in the risk appetite boosts their appeal as safe havens.
(Also Read: Gold "Dream Run" May Continue: Analysts)
What Analysts Say
"Despite weaker risk sentiment amid concerns that Europe may reinstate lockdown to check the coronavirus spread ,gold plunged over 2 per cent as investors sought the safety of the US dollar, yen and bonds, and moved out of commodities and equities," said Ravindra Rao, VP-head commodity research, Kotak Securities.
"Gold may witness choppy trade along with other commodities as market clarity in needed on possible lockdowns in European countries. However, we expect buying to emerge at lower levels as concerns about US economy may limit upside in US dollar," he said.
