Gold price in India in today's trade (August 18, 2020) tracking firm global rates surged in price. On the MCX, October gold futures in early trade edged higher by 0.16% or Rs. 85 to Rs. 53360 per 10 gm. Silver in line also rallied by close to 1% or Rs. 656 to Rs. 69811 per kg. In the previous session, gold settled at Rs. 53275, up 2% or Rs. 1048, while silver jumped close to 3% or nearly Rs. 2000 to Rs. 69155. On August 7, 2020 gold hit a new high of Rs. 56191 per 10 gm.
International gold rates
In the global markets, gold prices edged higher on the back of weakness in the US dollar that declined 0.23% to over one-week low. Though, gains in the yellow metal were capped on account of strength in US equities as well as indications of resilience in global economic activity. Spot gold strengthened by 0.1% to $1,987.51 per ounce by 0114 GMT.
U.S. gold futures however softened in trade by 0.3% to $1,993.30 per ounce.
Current gold price movement influenced by some of the below factors
1. Escalating US-China spat with Washington announcing new curbs on Huawei Technologies Co.
2. Equities rally in the US, wherein Nasdaq hit a record high on August 17, 2020 and also S&P 500 was close to its record high level.
3. In Japan a business sentiment survey revealed that manufacturers there are at their least pessimistic in four months amid the pandemic.
Outlook for gold going ahead
Several analysts hold their bullish stance on gold. Slow global growth prospects amid rising threat of pandemic continue to provide support to the broad bullish outlook of the commodity, said Hareesh V, head of commodity research, Geojit Financial Services.
Trader community in the gold market however await minutes from the last US fed's meet due to be released on August 19, 2020.