Gold, silver futures rise on spot demand as investors buy the dip

Gold and silver futures on the Multi Commodity Exchange (MCX) were trading in the green on Friday, February 13, as more investors bought the dip, putting upward pressure on bullion. 

At around 5:30 pm, gold futures for April delivery were trading 0.5% higher at ₹1,53,701 per 10 gram on the MCX. The contracts touched an intraday high of ₹1,54,837 per 10 gram on Friday after closing at ₹1,52,836 per 10 gram in the previous session. 

Meanwhile, silver futures were trading 2.57% up at ₹2,42,500 per kg after touching an intraday high of ₹2,48,786 per kg on the MCX. On Thursday, the March expiry contracts closed at ₹2,36,435 per kg.

According to analysts, fresh positions built by participants led to a rise in gold prices.

In the global market, gold futures rose 0.81% to $4,962 per ounce in New York. 

On Thursday, gold prices in Delhi ended 0.25% lower at ₹1,60,900 per 10 gram, while silver prices closed flat at ₹2,68,500 per kg.

"Gold traded within range with modest declines on Thursday amid markets scaling back aggressive rate-cut expectations following stronger-than-expected data from the US labour market," a PTI report quoting a commodity market analyst said.

Gold and silver have fallen from the record highs hit in the last week of January due to weak global trends, falling safe-haven demand and profit booking.

The yellow metal is a safe-haven asset; its prices rise during geopolitical uncertainties, market fluctuations, weak currencies and increased central bank gold buying. Gold has fallen from its record high due to massive profit-booking after hitting an all-time high, easing geopolitical tensions and a stronger dollar.