Gold prices saw marginal gains on MCX, the yellow metal was trading 0.8 per cent higher at Rs 47,538 per 10 grams in October futures, while silver September futures edged higher and rose 3 per cent to Rs 63,585 per kg.
Silver prices outperformed gold prices mainly due to easing pandemic concerns in China.
In the international market, the yellow metal was trading higher as the spot price on COMEX rose 2 per cent to $1,817 an ounce. However, silver remained low as silver was priced at $24 an ounce on COMEX.
The outflow of gold ETF holdings continued as holdings in SPDR Gold shares fell to their lowest level since April last year at 1,002 tonnes for the week from 1,012 tonnes in the previous week.
The precious metal prices were up on Friday following comments emanating from the US Jackson Hole symposium. At the same time, bullion prices were supported by a weaker dollar and a fall in US Treasury yields, amid a cautious outlook by US Federal Reserve Chairman Jerome Powell, who said that although the US economy was in a strong position, it was still Wasn’t completely. Untouched by the effects of the coronavirus pandemic.
Commenting on the gold price trend, Ravindra Rao, Head of Commodity Research, Kotak Securities, said, “COMEX gold traded close to $1,818 an ounce after gaining 1.4 per cent on Friday. Weakness in the US dollar led gold to trade three times. Trading close to week’s high. Market players eased Fed’s monetary tightness concerns following Fed chairman’s remarks, support price geopolitical tensions related to Afghanistan and mixed economic data from major economies And rising virus risks have increased. However, weak investor interest is weighing on the price as evidenced by ETF outflows. Gold is up $1,800 an ounce and momentum has turned positive, although mixed factors could keep prices volatile. Huh.