Gold rate today slips as traders book profits

NEW DELHI: Gold and silver prices slipped in early trade on Monday as traders booked profits while waiting for clarity on the US Fed policy. A slew of restrictions in many European cities checked the fall in prices.

Investors are now looking forward to clues on Fed’s monetary policy as a slew of policymakers are due to make public speeches, including Chairman Jerome Powell, who will appear before Congressional committees later this week.

Gold futures on MCX were down 0.15 per cent or Rs 78 at Rs 51,637 per 10 grams. Silver futures fell 0.13 per cent or Rs 87 to Rs 67,790 per kg.

Gold prices rose Rs 224 to Rs 52,672 per 10 grams in the national capital on Friday in line with strong international prices of the precious metal, according to HDFC Securities. Silver also went up by Rs 620 to Rs 69,841 per kg.

Globally, gold prices edged higher on Monday, propped up by a softer dollar while fresh coronavirus-induced curbs globally dented hopes of a swift economic recovery, with investor focus on speeches by Federal Reserve policymakers due this week.

Spot gold rose 0.3 per cent to $ 1,954.65 per ounce by 0118 GMT. US gold futures inched 0.1 per cent lower to $ 1,959.90.

The dollar index was down 0.1 per cent against its rivals, making gold more attractive for buyers holding other currencies.

Gold speculators raised their net long position by 10,622 contracts to 165,251 in the week ended Sept. 15.

Holdings in SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, rose 1.03 per cent to 1,259.84 tonnes on Friday.

Gold jewelers in India pinned hopes on an upcoming festive season, with dealers offering discounts for a fifth straight week to lure customers back to shops, as activity remained muted in Asian bullion hubs.

Silver gained 0.6 per cent to $ 26.92 per ounce, platinum was up 1.3 per cent to $ 939.75 and palladium was 0.8 per cent to $ 2,374.93.