Gold rates retreat from all-time high, focus on US jobs for now

Source :Sify
Author :Sify
Last Updated: Fri, Jul 3rd, 2020, 01:22:32hrs

Mumbai/Chennai/New-Delhi: Gold rates in the country made a moderate retreat from the highs posted on Wednesday.

Gold rates on Wednesday raced off to an all-time high, with jewellers quoting Rs 48,980 for bullion. Small jewellers were reportedly selling gold at Rs 50,000 for the 24 Karat variant. 22 Karat gold raced touched levels of Rs 47,000 per ten grams.

Rates on Thursday cooled by a margin of Rs 600-800 across several cities in the country.

IBJA's PM tracker quoted a rate of Rs 48,308 while the Madras Jewellers and Bullion Merchants Association quoted Rs 46,220 for the 22K gold.

On the MCX Gold Futures for August contracted by 1.23 percent or Rs 595 to quote Rs 47,672 per unit (as at the time of publishing). Rates touched Rs 48,273 before recording a decline. Silver Futures contracted by Rs 700 to quote Rs 48,750 per kilo.

Silver rates across several Indian cities reported a decline in range of 3-5 percent.

Also Read: Latest Live Gold & Silver Rates

Rates in India remained in check after the Indian Rupee made a stellar recovery. The Rupee surged to a three month high of Rs 75.01 against the US greenback. The Rupee's strong swing helped IT stocks make a modest gain in equity markets.

The gold rates could be in check until further cues from a crucial US jobs report gets unveiled. Gold traders are likely to assess the jobs market and accordingly figure out forex and gold-investment strategies.

Gold is trading in US spot markets in a range of $1757.87 - $1774.49 with several technical indicators insisting on buying the yellow metal. LBMA rates for Thursday were reported at $1,771.05 per troy ounce.

Hareesh V, Head commodity Research at Geojit Financial Services was quoted in a note as saying, "Escalating geopolitical tensions, concerns of a quick global economic recovery and a weak US dollar will continue to lift the safe haven demand and thus prices of gold. However, investors may take a cautious stance ahead of the key US employment data scheduled later during the day."

"As long as prices stay above $1710 (London spot) we can expect the bullish outlook to continue in the counter. The immediate downside reversal point is $1664," he added.

Disclaimer: With Agency inputs and Image credit to IANS.