New Delhi, Oct 16: Gold and silver prices stayed steady in the national capital on Friday, offering little respite after a volatile week, as a strengthening rupee capped recovery in the precious metals.
The 99.9 per cent pure yellow metal remained unchanged at Rs 1,49,900 per 10 grams, inclusive of all taxes. Silver also held steady at Rs 2.15 lakh per kilogram, according to local traders.
Gold prices declined Rs 4,500, or 3 per cent, during the week, while silver shed Rs 13,500 or 6 per cent, in the local market.
The precious metals attempted to claw back losses after slipping towards Rs 1.49 lakh per 10 grams for gold and Rs 2.15 lakh per kg for silver. However, the rupee’s continued appreciation limited the recovery, said Vikram Subburaj, CEO at digital asset trading platform Giottus.com.
The rupee strengthened for the sixth straight session on Friday and settled 7 paise higher at 94.92 against the US dollar, backed by the Reserve Bank’s measures to curb spot demand for the greenback.
In the international market, spot gold gained 0.30 per cent to USD 4,183.34 per ounce, while silver rose nearly 1 per cent to USD 57.80 an ounce.
“Gold and silver bounced back on safe-haven buying and short-covering, while a softer dollar index helped, slipping from its 18-month high,” said Renisha Chainani, Chief Research Officer at Augmont.
Akshat Siddhant, Lead Quant Analyst at investment platform Mudrex, said that silver remained above USD 57 an ounce in global trade, drawing support from safe-haven demand amid weaker equities and falling US bond yields.
Meanwhile, US Federal Reserve Chair Kevin Warsh reiterated the central bank’s commitment to price stability and cited ongoing surge in investment as a major positive factor for the global economy.
Warsh, speaking in Bangkok at the annual meeting of the IMF and the World Bank, declined to offer a view on the upcoming policy meeting of the Fed’s next rate decision, due on October 28.
On the outlook, Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, said gold is expected to range trade with a slight bullish tilt as traders watch crude oil prices.
