Spot prices for gold and silver remained mostly down throughout the week as investors remained cautious about buying safe-haven stocks on two positive announcements regarding Covid-19 vaccines. Drugmakers Pfizer and BioNTech said on Wednesday their Covid-19 vaccine was found to be 95% effective in the final analysis of the phase 3 trial, paving the way for companies to seek emergency clearance from American regulators.
On Tuesday, gold prices edged up 3 rupees to 50,114 rupees per 10 grams in the nation’s capital amid choppy trading and the rupee’s depreciation, according to HDFC Securities. The precious metal had closed at Rs 50,111 per 10 grams in the previous trade. Silver prices jumped from Rs 451 to Rs 62,023 per kilogram to Rs 61,572 per kilogram during the last exchange.
“24 karat gold spot prices in Delhi were trading slightly higher by 3 rupees on global gold prices and the depreciation of the rupee. The spot rupee was trading around 12 paise lower against the dollar for the day, ”said Tapan Patel, senior analyst at HDFC Securities (commodities), according to PTI news agency.
In the global market, gold was trading slightly higher at $ 1,877 an ounce, while silver was almost flat at $ 24.20 an ounce.
Gold prices were flat on Tuesday morning as investors focused on market fundamentals rather than the accommodating US Fed, stimulus hopes and concerns over Covid-19 infection. Prices may trade sideways to higher in the current range pending further market triggers, Patel added.
According to HDFC Securities, gold prices fell from Rs 357 to Rs 50,253 per 10 grams in Delhi on Wednesday due to the appreciation of the rupee and subdued investor demand. It had closed at Rs 50,610 per 10 grams in the previous trade. Silver prices also fell from Rs 532 to Rs 62,639 per kilogram, from Rs 63,171 per kilogram on Tuesday.
Patel of HDFC Securities said the rupee was trading around 32 peas stronger against the dollar during the day. “Gold prices should trade sideways lower in the absence of any major economic data trigger. The current uncertainty over the increase in coronavirus cases and the US administration after the election could limit the drop, ”he said.
In the international market, gold was trading higher at $ 1,882 per ounce, while silver was also listed at $ 24.57 per ounce.
Gold prices fell from Rs 248 to Rs 49,714 per 10 grams in the nation’s capital on Thursday, as investors and traders switched to riskier assets for new vaccine development, according to HDFC Securities. The yellow metal had closed at Rs 49,962 for 10 grams in the previous trade. Silver also fell from Rs 853 to Rs 61,184 per kg against the previous close of Rs 62,037 per kg.
“24 karat gold spot prices in Delhi have fallen below Rs 50,000 by Rs 248, reflecting the sale of international gold prices overnight,” said Patel of HDFC Securities. The price of gold traded lower as investors and traders turned to riskier assets for new vaccine development, Patel added. Prices are expected to trade sideways lower as markets may continue to digest 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 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 298 rupees to 61,232 rupees per kg from the previous close of 60,934 rupees per kg.
“Spot gold prices for 24-karat gold in Delhi have traded higher by 65 rupees, reflecting overnight gains in international gold prices limiting the rise in appreciation of the rupee, “Patel said, according to PTI. In the international market, gold prices were trading slightly higher at $ 1,868 per ounce and silver was up at $ 24.15 per ounce.
“We are seeing a bit more consolidation to correct gold prices due to the strength of the US dollar. However, we believe this is a buying opportunity, ”said Sriram Iyer, senior research analyst at Reliance Securities, quoted by PTI of the outlook. Iyer also said the medium to long-term outlook was optimistic, as as the pandemic-induced crisis emerges, the United States and Europe may launch new stimulus measures to support their economies.
(With PTI inputs)