Gold prices in India on Friday (September 4, 2020) are marginally up after 3 day's of straight fall. On the MCX, gold for October delivery quotes higher by 0.21% or Rs. 108 at Rs. 50850 per 10gm. This is a steep correction in gold price from record highs struck on August 7,2020 of over Rs. 56000.
Silver futures are also up in trade by 0.45% or Rs. 298 at Rs. 67224 per kg. Silver also has scaled above Rs. 70000, its highest price amid recovery in demand for silver in industrial units and low availability amid the pandemic.
Internationally sentiments supported strength in bullion Federal Reserve called on Congress on Thursday and said to deliver additional stimulus and indicated on keeping interest rate at ultra-low levels for years as well as on further loosening monetary polciy.
The addiitonal stimulus measures as well as low-interest rates in the economy brighten the sheen of yellow-metal as the opportunity cost of holding non-yielding bullion reduces and also geopolitical unrest bodes well for the yellow-precious metal.
Also, the support was lent by dollar's weakness and a pullback in equities, which increased bullion's appeal.
At the same time, India recording record one-day cases with India case load scaling to 4 million is another factor giving yellow-metal a push in price.
Other global factors that played their part in supporting bullion's rise are Brexit uncertainty and enhanced fiscal and monetary policies under the new regime of Japan.
Back in India, SGBs VI subscription closes today and 24 K and 22K gold quotes at a price of Rs.49540 and Rs. 50540 per 10 gm.