Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Friday following gains in international spot prices after an unexpected rise in US jobless claims dented dollar, analysts said.
At 11:30 am, gold futures for October delivery rose 0.29 percent to Rs 52,300 per 10 grams as against the previous close of Rs 52,151 and opening price of Rs 52,160 on the MCX. Silver futures traded 1.63 percent or by Rs 1,100 higher at Rs 68,695 per kg. The prices opened at Rs 68,397 as compared to the previous close of Rs 67,595 per kg.
“Gold prices recovered from an over 3 percent slide in the previous session, after US jobless claims unexpectedly topped one million again and the Federal Reserve minutes reiterated concerns over economic recovery. An unexpected rise in jobless claims last week, volatility in equities, increasing worry over rising COVID cases and other uncertainties are supportive for metal prices, said Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services Ltd.
Although a rebound in yields from the lows and rise dollar index limited gains for the same, he added.
International gold prices rose on Friday after bleak US jobless claims data reinforced fears of a slower recovery from the coronavirus-induced economic crisis, denting the dollar and US Treasury yields, Reuters reported.
Spot gold was up 0.3 percent at $1,947.83 per ounce. Gold is up 0.2 percent so far this week, having shed 4.5 percent in the week to August 14, its worst in five months. US gold futures rose 0.5 percent to $1,956.10.
Market participants today, will keep an eye on the preliminary manufacturing and service PMI number expected from major economies; which if reported weaker than expectations, could lend further support to bullion's, according to Damani.
“Broader trend on COMEX could be in the range of $1,925- 1,975 and on domestic front prices could hover in the range of Rs 52,000-52,700,” Damani said.
Meanwhile, concerns over rising coronavirus cases and increasing trade tensions between US and China also supported gold prices, said Ajay Kedia, Director, Kedia Commodity Comtrade.
“Gold is trading rangebound. If gold breaches $1,970 levels, we may see $2,000 levels again. On MCX, if price breaches Rs 52,600 level, then it may rise to Rs 53,200,” Kedia added.
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