Gold Silver Reports (GSR) – Some traders however fear that higher prices could hit demand for gold during this festive season.
Gold prices today rose to six-year high today ahead of key festivals of Dhanteras and Diwali. Gold rates today edged up by Rs 30 to hit Rs 32,650 per 10 grams amid festive demand.
This is the highest level of gold prices since November 2012 when the precious metal had closed at Rs 32,940 per 10 gram. In Delhi, gold of 99.99% and 99.5% purity rose by Rs 30 each to Rs 32,650 and Rs 32,500 per 10 gram, respectively. Silver prices today however fell by Rs 40 to Rs 39,200 per kg amid tepid demand by industrial units.
Sovereign gold prices today however remained unchanged at Rs 24,900 per piece of eight gram. Silver ready prices fell by Rs 40 to Rs 39,200 per kg, while silver weekly-based delivery rose marginally by Rs 5 to Rs 38,350 per kg. Silver coins rates also increased to Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.
In contrast, gold weakened in global markets today, falling to a more than two-week low amid a rebound in global equities and higher dollar. The US dollar today hit 16-month highs against its key rivals on continued strength in the US economy.
A stronger dollar makes dollar-denominated bullion more expensive for users of other currencies while higher interest rates reduce the attraction of non-yielding gold. The rupee today weakened past 74 a dollar level against the US dollar, increasing the imported cost of gold.
“Gains in dollar is impacting dollar-denominated gold negatively,”
The next trigger for commodities like gold will be the verdict of next week’s US mid-term elections, which will determine whether the Republican or Democratic party controls the US Congress, say analysts said.
Globally gold has had a volatile year so far. From a high of $1,366 in January, spot gold prices fell to $1,159 in August, before rising back to $1,220 levels.
Delegates at the London Bullion Market Association’s annual gathering on Tuesday predicted higher prices in a year’s time for gold and other commodities like silver, platinum and palladium. Recently, Goldman kept its three, six and 12-month forecasts for gold prices at $1,250, $1,300 and $1,350.
