Gold prices steady at Rs 52,701 per 10 gram, silver rises to Rs 67,439 a kg

Gold prices on Friday was recorded at Rs 52,701 per 10 gram on subdued global cues and weaker dollar while silver prices rose to Rs 67,439 from Rs 66,256 per kg, according to Indian Bullion and Jewellers Association. The yellow metal has witnessed sharp volatility in the market as experts chart its direction after a massive slump from recent highs.

Gold jewellery prices vary across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making charges.

In New Delhi, prices of 22-carat gold jumped significantly to Rs 51,150 per 10 gram from previous close of Rs 50,250 while prices of 24-carat also climbed to Rs 55,900. In Chennai, the rate for 22-carat was Rs 51,050 while for 24-carat it was Rs 55,500. In Mumbai, 10 gram 22-carat was retailing lower at Rs 51,250, according to Good Returns website.

On MCX, gold futures for October touched Rs 52,823 after rising 1% while silver futures for September rallied nearly 6% to close at Rs 70,690.
Multi Commodity Exchange of India on Wednesday said it will launch a liquidity enhancement scheme in the newly launched segment 'options on goods' with gold mini contract.

The liquidity enhancement scheme, popularly known as market making, will start from September 1, MCX said in a circular.

"The Exchange, based on a competitive bidding process, will appoint the lowest (qualified) bidder in terms of 'bid incentive amount' as a single designated market maker for the product till the scheme remains in force. The maximum incentive bid amount is Rs 40 lakh per month, the exchange circular added.

In the international market, gold jumped over 1% on Thursday, rebounding from a near three-week low hit in the last session, as the dollar dipped and a slow recovery in the US labour market reinforced the economic toll from the coronavirus pandemic.

Spot gold rose 1.5% to $1,947.08 per ounce, having slipped below $1,900 on Wednesday. US gold futures rose 0.2% to $1,952.10. "The dollar has been quite weak ... this recovery we've had (in the labor market) has been the low-hanging fruit. It's an easy bounce," said Edward Meir, analyst at ED&F Man Capital Markets.

The dollar was down 0.4% against rivals, bolstering gold's appeal for those holding other currencies, as Washington continues to remain in a stalemate over additional stimulus.

Adding to the gloomy outlook, Federal Reserve policymakers warned US growth would be muted until the coronavirus was contained.