Gold, silver prices rise on Dhanteras, traders hope for decent buying season

Gold prices edged higher on Thursday, when the country celebrates Dhanteras. The auspicious day, which comes just ahead of Diwali, is marked by buying of precious metal.

On MCX, gold futures rose 0.35% to Rs 50,339 per 10 gram while silver futures gained 0.38% to Rs 62,780 per kg. In the previous session, gold futures had declined 0.6% or Rs 310 per 10 gram while silver rates had tumbled 1% or Rs 600 per kg.

The gold price has seen sharp fall in the Diwali week, of about Rs 2,000 per 10 gram. This is going to boost the demand for the precious metal in the festive season.

“Amid pent-up customer demand in the market, the revival of the economy and positive consumer sentiment, Dhanteras will kick off a decent buying season for the jewellers across the country,” Ahammed MP, Chairman, Malabar Gold & Diamonds told Mint.

In the international market too, gold prices edged higher on Thursday, as concerns over the economic fallout from surging Covid-19 cases outweighed positive vaccine news.

Gold prices have come under pressure after Monday’s encouraging late-stage coronavirus vaccine trial data by Pfizer Inc. Prices are down 4.2 per cent so far for the week.

“The reality is we are just holding above the support levels between $1,850 and $1,860 and a breach there would introduce some pretty serious downside potential,” said Michael McCarthy, chief strategist at CMC Markets.

The dollar index held steady near a one-week high hit on Wednesday.

Those who want to invest in gold this Dhanteras also have the option of investing in sovereign gold bonds what are currently open for subscription. The issue price for the Sovereign Gold Bond has been fixed at Rs 5,177 per gram of gold, the Reserve Bank of India said in a statement last Friday. The scheme will remain open till November 13.