Gold Gains ₹695/10gm, Silver Steady

2 Aug 2024 , 12:01 PM

Gold October futures contracts at MCX began at ₹70,305 per 10 grammes on Friday, up 0.50% or ₹351, while silver September futures contracts were trading at ₹83,684/kg, up 1.32% or ₹1,090, amid heightened geopolitical concerns.

Silver prices stayed flat over the same period, up ₹90, while gold prices increased by little over 1% on Thursday, rising by ₹800/10 gm. However, the metal was unable to maintain the gains and fell by ₹535 from the day’s high, eventually earning ₹695.

Both domestic and foreign markets saw mixed results for gold and silver on Thursday. The gold futures contract for October finished at ₹69,954 per 10 grams, up 0.43%, and the silver futures contract for September settled at ₹82,594 per kilogram, down 1.20%.

Although they climbed early in the trading session, gold and silver’s prices were unable to hold at higher levels due to their extreme price volatility. Increased demand for gold as a safe haven was fueled by Middle East tensions following the deaths of senior Hamas and Hezbollah officials in airstrikes in Iran and Lebanon.

While U.S. unemployment claims increased to 2,49,000 from 2,35,000 in the prior period and reached their highest levels since August 2023, the U.S. economic data announced on Thursday were not entirely positive. The July reading of the U.S. flash manufacturing PMI, which is the lowest since November 2023, was 46.8, down from the previous reading of 48.5. This data was extremely depressing.

The US Dollar Index, or DXY, dropped 0.07, or 0.06%, today and was trading close to the 104.35 mark.

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