On Friday (October 9, 2020), gold prices on the MCX rallied over 1 percent where it settled at above Rs. 50800 per 10gm. Silver too in line gained close to 4 percent or Rs. 2365 to again hit levels of Rs. 62884 per kg.
International rates have been range bound too
Globally too rates have been trading in a range as there is uncertainty all around and remained in the range of US$1800-1930 per ounce.
Clear concerns that remain are and have a bearing on gold prices:
1. Gains in equity and as a result there is improved risk-sentiment which reduces appeal of gold
2. Dollar index is losing which though gives some impetus to gold.
3. Jobless data in the US came in weak which is a threat to the world's most developed economy which is facing the worst of blow due to the pandemic.
4. No clear signal of the US stimulus being doled out until at least elections.
5. Also global ETF investors are said to remain on the sidelines, which is taking the sheen out of gold price. Though in India, as per AMFI data, investors have been taking positios into Gold ETFs for the sixth straight month.
6. As per WGC data, central banks are now offloading position in gold and ending their 1.5 year long take on accumulating gold.
Outlook for gold price
So, with no clear signs gold is said to remain volatile and as concerns on economic growth looming in the US, dollar may be brought under further pressure, providing support to gold price.