Gold and silver prices rose for a second straight session on Thursday amid rising geopolitical tensions and cautious US Fed signals. In Mumbai, 24-carat gold stood at Rs 1,54,470 per 10 grams. MCX futures gained after exchanges withdrew additional margins on bullion contracts
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Gold and silver prices continued to rise for a second consecutive day on Thursday amid a rise in geopolitical tensions. The sudden rise in gold prices in the commodity market is because of the cautiousness of the US Federal Reserve stance and withdrawal of additional margins on gold and silver futures in the domestic market.
As reported by news agency IANS, the US Defence Department has sent additional weaponry to the Middle East, such as warships, air defences and submarines, in preparation for a possible military strike on Iran if negotiations fail, according to multiple reports.
Gold prices in Mumbai
While the price of the yellow metal across Mumbai and India has been extremely volatile for the last few days, the 24-carat gold on Thursday experienced a marginal hike in prices. At the time of filing this story, the price of 24-carat gold in Mumbai stood at Rs 1,54,470 for 10 grams. On the other hand, the price of 22-carat gold was recorded at Rs 1,41,420 for 10 grams. However, the demand for gold in India amid the volatility remains stagnant.
Gold MCX
The MCX gold April futures on Thursday also gained 0.22 per cent to Rs 156,100 per 10 grams on an intraday basis. Meanwhile, MCX silver March futures gained 0.29 per cent to Rs 244,971 per kg, as per IANS.
The MCX and the NSE have withdrawn the additional margin of 3 per cent levied in gold futures and 7 per cent levied in silver futures in all contracts of all variants, with effect from Thursday. The removal of additional margins is expected to invite higher speculative participation in the market and increase intraday activity, pushing prices higher.
Further, thin liquidity because of Lunar New Year holidays in Mainland China and several other Asian markets also acted as headwinds on the rally, market participants said.
Gold prices in the international market
In international markets, gold prices hovered around USD 5,000, while dip buying ahead of the Federal Reserve meeting minutes was seen, while mixed economic data kept the US Fed officials' opinion on monetary policy divided, said Manav Modi, commodities analyst, Motilal Oswal Financial Services Ltd.
(With inputs from IANS)
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