Kolkata: Domestic gold and silver traded lower on Friday, tracking global cues. Stronger dollar and better US jobs data were key factors in the market, analysts said.
MCX October gold opened at Rs 52,675 per 10 gm as compared to yesterday’s closing of Rs 52,930 per 10 gm. It then touched a low of Rs 52,160 per 10 gm and at around 12.30 pm gold futures was at Rs 52,330 per 10 gm.
Silver futures also came under pressure. MCX September silver opened on a negative note at Rs70,650 per kg, down by Rs 427 per kg from yesterday’s closing of Rs 71,077 per kg. It then touched a low of Rs 67,889 per kg and at around 12.30 pm silver recovered a bit and was trading at Rs 68,555 per kg.
In the domestic spot market, gold was trading at Rs 52,702 per 10, down by0.48% compared to yesterday’s price. Silver too, went down by 1.83% to Rs 67,439 per kg compared to yesterday’s price of Rs 68,676 per kg.
Sriram Iyer, senior research analyst at Reliance Securities said: “Investors will await cues from the US stimulus package and its passing over the weekend. However, hopes of passage of the stimulus package dwindled after the US President Donald Trump said he was blocking Democrats’ effort to include funds for the US Postal Service and election infrastructure in a new coronavirus relief bill.”
Iyer said investors would be watching US-China ties ahead of trade talks on August 15. “Markets could remain volatile and witness some consolidation during the session,” he said.
In the international market, spot gold was down 0.1% at $1,950.94 an ounce by 0550 GMT. Bullion has declined 4% so far this week, its biggest weekly percentage fall since early March. US gold futures fell 0.6% to $1,959.50 per troy ounce.
Rising US-China tensions and correction in the dollar has led to profit-booking in the safe-haven asset. The tension between the US and China escalated after the ban on Chinese apps in the US-led to Beijing imposing sanctions on 11 US officials. Investors are now keeping a close watch on the scheduled talks between US and China on August 15. Any breakthrough in the talks will decide the price trend for gold and silver in coming week.