Gold futures edged higher on Monday, while silver rates declined in choppy trade. On the Multi Commodity Exchange (MCX), gold futures, due for an August 5 delivery, were last seen 0.05 per cent up at Rs 50,860, compared to the previous close of Rs 50,834. Silver futures, due for a July 5 delivery, were last seen 0.25 per cent lower at Rs 60,782 against the previous close of Rs 60,937.
Domestic spot gold with a purity of 24 carats opened at Rs 51,064 per 10 grams today, and silver at Rs 61,067 per kilogram - both rates excluding GST (goods and services tax), according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
Foreign Exchange Rates:
Globally, gold prices rose today as a weaker dollar buoyed bullion demand, with a U.S. holiday expected to lead to thin trading during the day.
Spot gold firmed 0.2 per cent to $1,843.57 per ounce. U.S. gold futures gained 0.3 per cent to $1,845.40.
The dollar index eased from near its highest level in about two decades. A weaker dollar makes safe-haven bullion attractive to investors.
Ravindra Rao, CMT, EPAT, VP - Head Commodity Research at Kotak Securities: "Weighing on the gold price is monetary tightening stance of U.S. Federal Reserve and other central banks which may keep yields higher. Global growth worries, inflation concerns and geopolitical tensions have however kept a floor to prices. Exchange-traded fund (ETF) flows also show a pick up in investor buying as the price has managed to hold above the $1800/oz level. Gold may remain choppy amid mixed factors however Fed's tightening stance may keep the U.S. dollar supported and this may weigh on gold price."
Pritam Patnaik, Head - Commodities, HNI and NRI Acquisitions, Axis Securities: "With the U.S. markets closed today and China expected to keep benchmark interest rates unchanged at its monthly fixing today, the bullion could witness some volatility in a tight range, with thin volumes. With the global economy tethering on the edge of recession, only time will tell if the central bankers can afford a free run on interest rate hikes. A turn towards a hawkish tone by central bankers will usher in fresh gold bulls. Till such a time, range-bound trading is expected to persist."