Global gold softens as US debt ceiling issue remains unresolved

Domestic silver improves while gold partially declines: Rupee strong against dollar and pound

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 two-way swings. Gold rebounded from two-month lows after US March quarter GDP estimates came in better than expected. Short covering also supported prices at the lower head in gold. However, late in the evening the prices were again bearish. On the other hand, the dollar index bounced back from a two-month high. The fund's profit booking came in dollar terms at the higher end. Global crude oil remained firm at the end of the week.

They were waiting face to face in gold and silver at the doorstep. Silver saw an improvement while gold ended soft. Rupee strengthened against major currencies in forex market.

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

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

In the world market, gold and silver fluctuated unilaterally. Gold was at $1957 per ounce while it was at $1936.83 and $1946 in the late evening. Silver traded between $22.68 and $23.25 per ounce late in the evening at $23.10.

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 solution to the ongoing impasse over the debt ceiling issue. Profit-booking saw the greenback rally at 104.10 late in the evening after the dollar pulled back from a two-month high.

At home, the rupee remained strong against the dollar and the pound. The dollar fell by 17 paise to 82.57 rupees while the pound fell by 37 paise to 102.04 rupees. Euro remained stable at 88.79 rupees.

Crude oil remained steady 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. The direction of crude oil prices can be seen after the debt ceiling issue in the US is resolved, an analyst said.