Gold Silver Update : Gold prices are rising but compared to August, it has declined by 6,000 per 10 grams.
Mumbai: On the dynamics of the global market, gold-silver prices in the domestic market today saw a rise in the price on Friday. On the Multi Commodity Exchange (MCX), the December futures price of gold has increased by 0.8 % to Rs 50,584 per 10 grams, whereas, Silver Future Rate has also gone up by 1.8 % to Rs 61,605 per kg. In its first session, there was a slight increase of Rs 142 in gold and 0.17 % in silver.
The prices of both metals were at the highest level in August
The prices of both precious metals reached the highest level in August this year. In August, 10 grams of gold had reached Rs 50,200 and silver had reached Rs 80,000. But, in the month of September, both the gold-silver have seen a fall in prices. The price of gold has come down by about 6000 rupees per 10 grams.
In the global market, gold prices were positive after US President Donald Trump announced a new relief package in the wake of the coronavirus pandemic. Earlier, President Trump has said that discussions have started with the Congress regarding the relief package. The gold has also benefited from the weak dollar. Spot gold was around $ 1,898 an ounce. The dollar index has fallen by 0.2 %. This is the second consecutive week when the dollar is falling. Gold is generally considered helpful in dealing with inflation.
Kotak Securities believes that if the fluctuation in the US dollar and the equity market occurs, then gold prices will also fluctuate. However, at the lowest price we may see an increase in gold purchases. Indeed, uncertainty about the US economy will continue amid the weak dollar position.
Central banks reduced gold purchases
Central banks around the world have also reduced gold purchases. According to a report, these central banks sold more gold in August than they bought. Prior to this, central banks bought gold continuously for one and a half years. This is also a reason for the continuous increase in the price of gold.