Gold, silver prices rise today after yesterday’s slump
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On the Multi Commodity Exchange (MCX), June gold futures were up 0.83% to Rs 46,775 per 10 gram and silver prices also edged higher, up 0.31% to Rs 47,482 per kg.
Gold prices in India went up on Friday after falling in the previous session as renewed tension between the US and China hurt the global risk sentiment.
On the Multi Commodity Exchange (MCX), June gold futures were up 0.83% to Rs 46,775 per 10 gram and silver prices also edged higher, up 0.31% to Rs 47,482 per kg.
The yellow metal had tumbled by about Rs 700 per 10 gram in the previous session.
Gold and silver prices had fallen on Thursday after better-than-expected US economic data and gains in the dollar index. On MCX, gold prices slipped around 2% and settled below Rs 46,500 and silver declined more than 3% to stay below 47,400.
Last week, gold rates had hit a new high of Rs 47,980 tracking global prices in the precious metal amid increasing US-China tensions and expectations of further stimulus from central banks.
In global markets, gold gained on Friday as an escalation in US-China tensions underpinned bullion’s safe-haven appeal, although positive economic indicators after some countries eased lockdowns set up the precious metal for a weekly drop.
Spot gold was up 0.2% at $1,727.75 per ounce by 0524 GMT, having dropped 1.4% on Thursday. US gold futures rose 0.4% to $1,729.40.
Bullion had rallied to its highest since October 2012 on Monday but has since lost ground and is now heading for a 0.7% weekly decline.
“The fundamentals are still supportive for gold. But, there was a slight improvement in the manufacturing activity in Europe and the US, the PMI data last night was slightly better,” Avtar Sandu, a senior commodities manager at Phillip Futures, said while speaking to Reuters.
The eurozone economy’s contraction eased in May, the Purchasing Manager Index (PMI) survey showed.
Germany’s private sector recession also improved on the loosening of lockdown curbs put in place to prevent the virus spread.
However, US-China frictions dampened risk appetite, underpinning bullion and offsetting pressure on the metal’s prices from the slightly better data.
Asian shares fell after Beijing’s plan to impose new national security legislation on Hong Kong drew a warning from US president Donald Trump.
Fitch Solutions said in a note that gold has held ground above the key $1,700 per ounce level, building impetus to reach its 2011 peak in the coming quarters.
The lower-for-longer interest rates with quantitative easing in full swing, macro and geopolitical uncertainty and strong investor flows should continue to support gold prices on a 6-12 month horizon, Fitch added.
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