Gold rate today rises ahead of Union Budget

NEW DELHI: Gold and silver futures prices in the domestic market traded with gains in the morning trade on Thursday, as low level buying pushed precious metals higher.

Investors are awaiting any development on the stimulus front. While there is a buzz that the government may reduce duty on gold to raise demand in the Union Budget.

Gold futures on Multi Commodity Exchange (MCX) were up 0.27 per cent or Rs 131 at Rs 49,067 per 10 grams. Silver futures climbed 1.36 per cent or Rs 919 to Rs 68,514 per kg.

“Gold is range bound as support from rising virus cases, mixed economic data from major economies and US stimulus expectations is countered by continued ETF outflows and lack of any cues about fresh measures by major central banks. Gold may remain choppy reflecting mixed trade in US dollar however rising virus cases and US stimulus expectations may lent some support,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

In the spot market, gold on Thursday fell Rs 109 to Rs 48,183 per 10 gram in the national capital following muted global trends. Silver also dipped Rs 146 to Rs 65,031 per kg.

Global markets

Gold prices were steady on Friday. Spot gold was unchanged at $1,840.91 per ounce by 0058 GMT. Prices were down 0.6 per cent for the week and 2.9 per cent for the month. US gold futures rose 0.1 per cent to $1,839.70.

The dollar rose 0.2 per cent, making gold expensive for holders of other currencies. The greenback has risen 0.8 per cent for the month helped by higher US Treasury yields. Higher yields on bonds make gold a less attractive investment because it pays no interest.

Silver dropped 0.7 per cent to $26.18 an ounce, having risen 4.5 per cent on Thursday, after some traders moved to cover short positions on rumours about a GameStop-style squeeze driven by retail investors. Platinum gained 0.3 per cent at $1,073.68 and palladium rose 0.4 per cent to $2,344.17.

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