Gold, silver prices mostly down this week

Spot prices of gold and silver remained down mostly throughout the week as investors remained cautious about safe-haven buying on two positive announcements about Covid-19 vaccines. Drugmakers Pfizer and BioNTech said on Wednesday that their Covid-19 vaccine was found 95% effective in the final analysis of the Phase-3 trial, paving the way for the companies to apply for emergency authorisation from the US regulators.

On Tuesday, gold prices rose marginally by Rs 3 to Rs 50,114 per 10 gram in the national capital amid choppy trade and rupee depreciation, according to HDFC Securities. The precious metal had closed at Rs 50,111 per 10 gram in the previous trade. Silver prices jumped Rs 451 to Rs 62,023 per kilogram from Rs 61,572 per kilogram in the last trade.

“Spot gold prices for 24 carats in Delhi were trading marginally up by Rs 3 on choppy global gold prices and rupee depreciation. The spot rupee was trading around 12 paise weaker against the dollar for the day,” HDFC Securities senior analyst (commodities) Tapan Patel said, according to news agency PTI.

In the global market, gold was trading slightly higher at $1,877 per ounce, while silver was quoting almost flat at $24.20 per ounce.

Gold prices traded steady on Tuesday morning as investors turned their focus to broad market fundamentals over dovish US Fed, stimulus hopes and Covid-19 infection worries. The prices may trade sideways to higher in the current range awaiting fresh triggers form the market, Patel added.

According to HDFC Securities, gold prices fell Rs 357 to Rs 50,253 per 10 gram in Delhi on Wednesday on rupee appreciation and muted demand by investors. It had closed at Rs 50,610 per 10 gram in the previous trade. Silver prices also declined Rs 532 to Rs 62,639 per kilogram from Rs 63,171 per kilogram on Tuesday.

HDFC Securities’ Patel said the rupee was trading around 32 paise stronger against the dollar during the day. “Gold prices are expected to trade sideways to down in absence of any major triggers from economic data. The current uncertainty over rising coronavirus cases and US administration post-election may limit the downside,” he said.

In the international market, gold was trading higher at $1,882 per ounce, while silver was also quoting up at $24.57 per ounce.

On Thursday, gold prices dropped Rs 248 to Rs 49,714 per 10 grams in the national capital, as investors and traders switched to riskier assets on new vaccine development, according to HDFC Securities. The yellow metal had closed at Rs 49,962 per 10 grams in the previous trade. Silver also declined by Rs 853 to Rs 61,184 per kg against the previous close of Rs 62,037 per kg.

“Spot gold prices for 24 karat gold in Delhi fell below Rs 50,000 by Rs 248, reflecting overnight selling international gold prices,” HDFC Securities’ Patel said. The gold prices traded lower as investors and traders switched to riskier assets on new vaccine development, Patel added. The prices are expected to trade sideways to down, as markets may continue to digest the vaccine optimism, he said.

In the international market, gold was trading lower at $1,861 an ounce, while silver was down at $24.02 an ounce.

There was a slight improvement on Friday as gold prices rose by Rs 65 to Rs 49,551 per 10 grams in Delhi reflecting gains in the international rates, according to HDFC Securities. Gold prices had closed at Rs 49,486 per 10 grams in the previous trade. Silver prices also jumped Rs 298 to Rs 61,232 per kg in comparison with the previous close of Rs 60,934 per kg.

“Spot gold prices for 24-carat gold at Delhi were trading up by Rs 65 reflecting overnight gains made in international gold prices limiting upside on rupee appreciation,” Patel said, according to PTI. In the international market, the gold prices were trading marginally higher at $1,868 an ounce and silver was up at $24.15 an ounce.

“We see some more consolidation to correction for gold prices due to the strength of the US dollar. However, we feel that this is a buying opportunity,” Reliance Securities senior research analyst Sriram Iyer was quoted as saying by PTI on the outlook. Iyer also said the medium-to-long-term outlook is bullish, as to emerge from the pandemic-induced crisis, the US and Europe could launch fresh stimulus to support their economies.

(With PTI inputs)

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