Gold and silver prices stay volatile this week amid strong US data and global cues
Gold and silver prices were highly volatile this week amid easing global trade tensions, stronger US economic data, and fading hopes of a December Fed rate cut. Gold fluctuated sharply on MCX, while silver ended lower despite broader bullish sentiment
New Delhi: Gold and silver prices remained volatile this week amid signs of some ease in global trade order, fading expectations of a December rate cut by the US Federal Reserve, and a stronger dollar index.
According to the Indian Bullion and Jewellers Association (IBJA), the price of 24-carat gold closed at Rs 1,22,653 per 10 grams on Friday, up Rs 221 against Monday’s price of Rs 1,22,432. Meanwhile, the price touched a week-low at Rs 1,21,691 on Tuesday and a high at Rs 1,23,388 per 10 grams on Wednesday.
Silver price ended the week at Rs 1,51,129 per kilogram, down Rs 3,804 from Monday’s price of Rs 1,54,933 per 10 grams. “Gold experienced a healthy correction this week but continues to maintain a strong bullish framework. COMEX gold closed at $4,079.5, while MCX gold settled around Rs 1,24,191, finding support precisely on the multi-month rising trendline,” said Ponmudi R, CEO of Enrich Money.
“Silver witnessed a sharp yet healthy correction this week across both COMEX and MCX, but the broader uptrend remains firmly intact,” Ponmudi added. Meanwhile, gold prices saw a massive dip on Friday amid stronger-than-expected US September jobs data, which faded expectations of a near-term Federal Reserve rate cut.
Gold futures contracts on the Multi-Commodity Exchange (MCX) were firmly in negative territory (as of 12.43 pm) as the December futures dropped by Rs 1,067, or 0.87 per cent, to Rs 1,21,697 per 10 grams.
MCX Silver December contracts dipped 2.17 per cent or Rs 3,349 to Rs 1,50,802 per kg. At the same time, the price of 10 grams of 24-carat gold was at Rs 1,22,149, down from Rs 1,22,881 on Thursday, according to IBJA.
“Gold traded highly volatile as Comex gold fell 1 per cent to $4,035, down by $41, while MCX gold rose Rs 300 due to a sharp rupee depreciation of nearly 1 per cent from 88.70 to 89.60,” said Jateen Trivedi of LKP Securities. Gold is expected to remain volatile within a range of Rs 1,20,000-Rs 1,24,000, he added.
