Prices of gold and silver prices opened higher in the key spot markets on Friday, October 7, amid weakness in the rupee, analysts said.
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The opening price for 999 purity gold was Rs 51,908 per 10 grams, up Rs 70 from Thursday’s closing price of Rs 51,838, while that of 999 purity silver was Rs 61,154 per kg, up Rs 484 from Rs 60,670, the data available on India Bullion and Jewellers Association’s (IBJA) website showed.
| Bullion | Purity | Opening price (Rs) | Previous close (Rs) |
| Gold | 999 | 51,908 | 51,838 |
| 995 | 51,700 | 51,630 | |
| 916 | 47,548 | 47,484 | |
| 750 | 38,931 | 38,879 | |
| 585 | 30,366 | 30,325 | |
| Silver | 999 | 61,154 | 60,670 |
| Source: India Bullion and Jewellers Association (IBJA) | |||
On the Multi Commodity Exchange of India (MCX), the gold contract for December delivery was trading at Rs 52,022.00 per 10 grams, up Rs 50.00 (0.1 per cent) at 1:58 pm while the silver contract for December delivery was at Rs 61,713.00, up Rs 367.00 (0.6 per cent).
In the global market, spot gold was little changed at $1,710.09 per ounce, as of 0651 GMT and US gold futures eased 0.2 per cent at $1,716.90, according to Reuters data.
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Speaking to indianexpress.com, Ajay Kedia, founder and director at Kedia Advisory said, “Gold prices are finding support in the domestic market due to weakness in the rupee which is trading near a record low, but internationally, gold and silver prices are trading in sideways to negative today as investors are keenly waiting for the US jobs data to understand the US Federal Reserve’s rate hike plans in the near term.”
Additionally, Kedia noted that some global gold-supplying banks have cut shipments to India in favour of focusing on China and Turkey where better premiums are offered. He said that such a move ahead of major festivals like Diwali when demand is higher in the domestic market may lead to a rise in local prices.
Navneet Damani, Senior VP – Commodity Research at Motilal Oswal Financial Services said, “Gold prices held steady ahead of the US jobs report that could help investors gauge the Fed’s rate-hike path, and were headed for their biggest weekly gain since March. The dollar index and benchmark US 10-year Treasury yields were steady after rising overnight.”
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“Investors are now focused on the US nonfarm payrolls (NFP) report due later in the day, with economists forecasting 250,000 jobs to have been added last month, compared with 315,000 in August. Along with NFP, focus will also be on the US unemployment rate, average hourly earnings and other jobs market data will be important to watch for. Broader trend on COMEX could be in the range of $1,700-1,730 and on domestic front prices could hover in the range of Rs 51,480–52,350,” he noted.
