Silver prices rocketed as retail investors, egged on by messages on Reddit, piled into the market in an attempt to push up prices. The retail investment frenzy in silver has left dealers from the United States to Singapore scrambling for bars and coins to meet demand.
Gold futures on MCX were up 0.31 per cent or Rs 150 at Rs 47,975 per 10 grams. Silver futures climbed 1.61 per cent or Rs 1,090 to Rs 72,046 per kg.
“Supporting gold price is hopes of additional US stimulus, disappointing Chinese economic data and loose monetary policy stance of major central banks. However, weighing on price is recent gains in the US dollar and progress on the vaccine front. Gold may continue to witness mixed trade unless there is clarity on the US dollar trend, however we expect price to trade with a positive bias on US stimulus expectations and loose monetary policy stance of central banks,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
In the spot market, gold in the national capital declined by Rs 480 to Rs 47,702 per 10 gram on Tuesday in-line with fall in global precious metal prices. Silver also tumbled Rs 3,097 to Rs 70,122 per kilogram.
“Silver bulls are back into barack after CME increased margin. Gold prices are expected to trade in the current range with sideways to downtrend for the day. MCX Gold April futures support lies at Rs 47,600 and resistance at Rs 48,600 for the day,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Silver prices attempted a rebound on Wednesday after an over 8 per cent plunge in the previous session prompted some buying, although the social media-driven rally that started last week appears to have cooled off.
Spot silver rose 1.4 per cent to $26.98 an ounce by 0052 GMT. Prices hit $30.03 on Monday, its highest since February 2013.
CME Group on Monday raised margins on its COMEX 5000 Silver Futures by 17.9 per cent. Spot gold rose 0.1 per cent to $1,839.16 per ounce. U.S. gold futures added 0.4 per cent to $1,840.90.
Platinum gained 0.3 per cent at $1,097.52 and palladium shed 0.1 per cent to $2,240.49.