There was a higher tick in gold and silver rates observed today in domestic markets with valuable metals continuing trade in a narrow range. MCX showed gold futures rising 0.2% to Rs51,571 per 10 gram and silver futures profiting 0.4% to Rs68,405 per kg. The last session indicated gold drop 0.7% with silver tumbling 0.8%. Gold has stayed low the past three weeks following its record high of Rs56,200 on August 7.

Internationally, gold rates edged higher today following weak Us employment data and increasing COVID-19 cases boosting the safe-haven appeal of gold. A 0.4% climb to $1,951.13 per ounce was seen in spot gold. Dull US dollar performance further aided gold, with the dollar index less by 0.1% as opposed to rivals, benefitting to gold for buyers with other currencies.

Compared to additional metals, silver dropped 0.5% to $26.97 per ounce with platinum dipping 0.4% to $936. The weekly jobless claims report in US indicated about 30 million people being on unemployment benefits by August’s end. This rose expectations of more stimulus to be rolled by governments and central banks to prop up the economies. Lower US interest rates tend to weigh on bond yields and the dollar, thereby generating appeal of non-yielding gold, which is also seen as a hedge against inflation and currency debasement.

The US Fed on Wednesday had kept interest rate unaltered as expected and maintained an uncertain outlook for the economy and reaffirmed that interest rate may remain low for a long time. There were no discussions on fresh measures and reconsiderations on necessities in extra fiscal stimulus. Choppiness in equity markets was caused by lack of fresh cues and an uncertain outlook for the US economy, providing some support to gold rates, said Kotak securities. Mixed US economic data also indicates uneven economic recovery.