Gold Price In India: Gold futures traded in the negative territory on Thursday, September 16, as the yellow metal mirroring muted trend in the international markets. On the Multi Commodity Exchange (MCX), gold futures due for an October 5 delivery, were last seen trading lower by Rs 109 - or 0.23 per cent - at Rs 46,787, compared to their previous close of Rs 46,896. Silver futures due for a December 3 delivery were last up 0.21 per cent at Rs 63,423 against a previous close of Rs 63,293.
Domestic spot gold opened at Rs 46,839 per 10 grams on Thursday, and silver at Rs 62,532 per kilogram - both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
What experts say:
On Wednesday, September 15, the rupee gained 18 paise to settle at 73.50 against the greenback on hopes of foreign fund flow, after the Cabinet cleared productive linked incentive schemes for the telecom and auto sectors.
Gold prices have a direct relationship with the dollar and mostly tracks an inverse relationship with the strengthening of the rupee against the American dollar.
Mr Amit Pabari, MD, CR Forex:
''Globally, the dollar index lost ground after touching a one-week high of 92.68 amid weaker than expected CPI inflation data which made investors reconsider the timing of Fed tapering. That apart, US industrial production data also missed forecasts coming in at 0.4 per cent for August, down from 0.9 per cent in July.
Economic indicators suggest that still concerns persist over a slowing global economic recovery. Attention will now turn to US retail sales data which is due today and the FOMC meeting next week for further clarity on the dollar.
USDINR pair could remain under pressure with upcoming inflows on account of Govt selling 5% stake in Hindustan Copper, Temasek acquiring 40 per cent stake in Integrace for 550crs, and Quadpro ITeS Limited IPO for 6000crs.
Further drive in rupee movement will be depending on whether RBI gets lenient on rupee appreciation or cap its gains thereof. Technically, the next support for the pair is near 73.20 and 73.80 remains a strong resistance, keeping the pair consolidated between 73.20-73.80 for the near term.''
COMEX gold trades marginally higher near $1796/oz after a 0.7 per cent decline yesterday. Supporting gold price is weakness in the US dollar, concerns about the health of the Chinese economy, geopolitical tensions and persisting virus risks.
However, weighing on price is weaker investor interest, stability in equity markets and continuing debate about Fed's monetary tightening. Gold may remain choppy near $1800/oz as market players remain non-committal ahead of the Fed meeting next week however challenges for the global economy may keep prices supported,'' said Mr Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities.