Gold & Silver

Gold, silver open firm as rupee remains weak

Rutam Vora Ahmedabad | Updated on August 29, 2019 Published on August 29, 2019

Gold and silver prices opened with marginal gains in the futures market on Thursday as currency pressure prevailed.   -  iStock.com

Cabinet decisions on boosting income appear to be failing to ease economic concerns

Gold and silver prices opened with marginal gains in the futures market on Thursday as currency pressure prevailed.

On Thursday, the rupee weakened further to inch towards the Rs 72 levels against the dollar. The Indian rupee opened lower at Rs 71.90 and depreciated further to Rs 71.95 in the early trades.

This comes despite Wednesday's Cabinet announcements triggering positive sentiment for the sugar industry and farmers for increased incomes in the coming days and better job prospects through the 100 per cent contract manufacturing decision.

Spot gold as quoted by the India Bullion and Jewellers’ Association (IBJA) for Wednesday stood at Rs 38,961, higher by about Rs 430 from Tuesday's close of Rs 38,536. The fresh spot rates for Thursday will be announced later in the day.

The MCX October gold contract traded at Rs 39,258 per 10 gm, up Rs 93 in early trading hours, while MCX silver for September contract quoted at Rs 46,888 per kg, up Rs 242 from its previous close.

Comex September gold traded up at $1,542.7, higher by $3.9 an oz against the previous close of $1,538.8. Comex September silver traded marginally positive at $18.37 an oz on Thursday.

Kotak Securities in its Commodity Insight stated, "COMEX gold trades in a narrow range near $1,545/oz, after a 0.2 per cent decline yesterday. Gold has turned choppy after failing to breach the six-year high tested earlier this week. Mixed trade in equity markets and US dollar has also led to choppiness in gold."

For silver, it said, "Silver trades in a range amid range-bound movement in gold and mixed trade in industrial metals. Silver has rallied sharply in the last few sessions. However, the gains remain challenged by industrial demand concerns and the stall in ETF buying."

Angel Broking in its advisory said, "Escalating trade tension between the largest economies in the world might continue to boost the appeal for the safe haven asset, gold. On the MCX, gold prices are expected to trade higher today; international markets are trading higher by 0.16 per cent, to close at 1,551.55 per ounce."

Published on August 29, 2019
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