A rally in global stocks over the past few weeks has affected the safe-haven appeal of gold and other precious metals. Typically viewed as a hedge against inflation and financial uncertainty, gold prices share an inverse relationship with equities, with any improvement in investors’ risk-appetite making the yellow metal and the US dollar (USD) less attractive safety bets. Here’s a lowdown on the current gold and silver rates. (Also Read: From Bonds, Derivatives To Jewellery, How To Invest Your Money In Gold | Looking To Invest In Sovereign Gold Bonds? Important Dates And Other Useful Information)
Comex gold settled 1.28 per cent lower at $1,788.10 per ounce on Friday. At this level, the benchmark is 14.82 per cent off an all-time high of $2,099.20 per ounce.
Comex silver ended 3.44 per cent lower at $22.64 per ounce on the same day.
What Analysts Say
“Gold is rangebound as support from rising coronavirus cases, mixed economic data and hopes of additional stimulus measures is countered by progress on the vaccine front, exchange traded fund (ETF) outflows and easing political uncertainty in the US,” said Ravindra Rao, VP-head commodity research, Kotak Securities.
“Gold’s fall has stalled near the key $1800/oz level and we may see some consolidation amid lack of fresh triggers,” he added.
Currently, MCX gold futures, for a December 4 settlement, quote at Rs 48,106 per 10 grams. On Friday, the MCX contract ended a volatile session at a loss of Rs 411, or 0.85 per cent, compared with its previous close of Rs 48,517.
The gold futures contract for a February 5 delivery settled lower by Rs 404, or 0.83 per cent, at Rs 48,114.
MCX silver futures (December 4) followed suit, tumbling by Rs 773, or 1.29 per cent, to settle at Rs 59,100 per kilogram.
Domestic Jewellery Price
Currently, gold jewellery rates are near Rs 48,830 per 10 grams, according to the Mumbai-based India Bullion and Jewellers Association (IBJA), an industry body.
— IBJA (@IBJA1919) November 27, 2020
The rupee declined 0.22 per cent to finish Friday’s session at 74.04 against the US dollar, despite weakness in the greenback overseas.
The dollar index – which gauges the American currency against six others – fell 0.22 per cent to 91.79.