Gold and silver prices remained volatile this week amid signs of some ease in global trade order.
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NEW DELHI — Gold and silver prices remained volatile this week amid signs of some ease in global trade order, fading expectations of a December rate cut by the US Federal Reserve and a stronger dollar index.
According to the Indian Bullion and Jewellers Association (IBJA), the price of 24-carat gold closed at INR 1,22,653 per 10 grams on Friday, up INR 221 against Monday's price of INR 1,22,432 per 10 grams. Meanwhile, the price touched a week-low at INR 1,21,691 on Tuesday and a high at INR 1,23,388 per 10 grams on Wednesday.
Silver price ended the week at INR 1,51,129 per kilogram, down INR 3,804 from Monday's price of INR 1,54,933 per 10 grams.
"Gold experienced a healthy correction this week but continues to maintain a strong bullish framework. COMEX gold closed at $4,079.5, while MCX gold settled around INR 1,24,191, finding support precisely on the multi-month rising trendline," said Ponmudi R, CEO of Enrich Money.
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"Silver witnessed a sharp yet healthy correction this week across both COMEX and MCX, but the broader uptrend remains firmly intact," Ponmudi added.
Meanwhile, gold prices saw a massive dip on Friday amid stronger-than-expected US September jobs data, which faded expectations of a near-term Federal Reserve rate cut.
Gold futures contracts on the Multi-Commodity Exchange (MCX) were firmly in negative territory (as of 12.43 pm) as the December futures dropped by INR 1,067, or 0.87 per cent, to INR 1,21,697 per 10 grams.
MCX Silver December contracts dipped 2.17 per cent or INR 3,349 to INR 1,50,802 per kg. At the same time, the price of 10 grams of 24-carat gold was at INR 1,22,149, down from INR 1,22,881 on Thursday, according to IBJA.
"Gold traded highly volatile as Comex gold fell 1 per cent to $4,035, down by $41, while MCX gold rose INR 300 due to a sharp rupee depreciation of nearly 1 per cent from 88.70 to 89.60," said Jateen Trivedi of LKP Securities.
Gold is expected to remain volatile within a range of INR 1,20,000-INR 1,24,000, he added.