Gold prices in trade today inched lower on cues from global rates. On the MCX, gold futures price for delivery in June declined by 0.24% or Rs. 111 to Rs. 46050.00 per 10 gm.
On Thursday, on weak economic data, gold prices jumped in the bullion market by Rs. 105 while in the futures market it scaled by 1.74% or Rs. 790 to again hit levels over Rs. 46161 per 10 gm. Also, as the number of jobless claim in the US has surged, there is threat of global recession looming.
Further a new set of data revealed on Thursday indicated that worker productivity decreased at its fastest rate in over 4 years as the working hours declined the most since 2009.
On the contrary, silver futures rose to 43234.00, with gains of Rs 111.00 or 0.26%. In the previous session, silver inched higher by 3% or Rs. 1278 to Rs. 43123 per kg.
In the international market, spot gold inched lower by 0.2% at $1,714 per ounce. This is as the improvement in risk-on sentiment on account of upbeat earnings in the US propelled equities higher.
Traders are keeping an eye on the US non-farm payrolls due to be released later in the day today. As per analysts, the unemployment rate is expected to be the worst in over 70 years.
Outlook for gold price
Given the economic turmoil which will boost safe haven appeal of gold, it is expected to scale to levels of its 2011 high price of $1900 per ounce internationally by August-September 2020. This in rupee terms means a price surge to levels of Rs. 51000 per 10 gm, said Head of Commodities and Currency at Axis Securities Limited.
The rationale given for this likely surge to such levels is on account of the recession which is fuelled by the coronavirus pandemic and in view of it central bank slashing interest rates to near zero.