Global gold softens as US debt ceiling issue unresolved

[ad_1]

Mumbai: With no resolution to the debt ceiling impasse in the US over the weekend, investors remained jittery and gold and silver prices remained volatile in the global market over the weekend with a two-way swing. Gold recovered from a two-month low after the US March quarter GDP forecast came out better than expected. Short covering also took support in gold prices at lower levels. However, the prices moderated again in the late evening. On the other hand, the dollar index has risen from a two-month high. The fund’s profit-booking occurred at the higher end in dollar terms. Global crude oil ended the week on a strong note.

They were waiting face to face in gold and silver at the door. Silver saw an improvement while gold closed on a lower note. The rupee strengthened against major currencies in the forex market.

The non-GST rate of gold in the Mumbai market fell marginally to Rs 60,142 at Rs 99.90 per 10 grams. The price of gold at Rs 99.50 per ten grams was Rs 59901. With GST, the prices were said to be three per cent higher. The non-GST price of silver rose marginally to Rs 70,500 from Rs 999 per kg on Thursday. With GST, the prices were said to be three per cent higher.

In the Ahmedabad market, gold was costing Rs 99.90 per 10 grams at Rs 62,200 while the price of ten grams at Rs 99.50 per 10 grams was Rs 6,200. Silver used to be Rs.72000 per kg at Rs.999.

There was a one-sided rise in gold and silver in the world market. Gold was at $ 1957 an ounce while it was at $ 1936.83 and $ 1946 in the late evening. Silver was trading at $23.10 in the late evening between $22.68 and $23.25 an ounce.

US GDP estimates for the March quarter came in better than expected, while weekly jobless claims rose modestly, which had a mixed effect on the precious metal. Players are eyeing a resolution to the ongoing impasse on the loan cap issue. Profit-taking saw the greenback rally to 104.10 late in the evening after the dollar pulled back from two-month highs.

At home, the rupee strengthened against the dollar and the pound. The dollar declined 17 paise to close at Rs 82.57, while the pound declined 37 paise to close at Rs 102.04. The euro remained steady at Rs 88.79.

Crude oil remained stable in the world market at the end of the week. Nymax WTI was at $72.69 per barrel while ICE Brent crude oil was at $76.97 per barrel. An analyst said that the direction of crude oil prices can be seen after the issue of debt limit in the US is resolved.