Gold and silver prices in India moved higher today, in line with a strong global rally in precious metals. On MCX, October gold futures moved 0.35% higher to ?55,290 per 10 gram. September silver futures moved 1% higher to ?72,600 per kg. In the previous session, gold had risen over 1% or ?580 per 10 gram, hitting ?record high of ?55,597. Silver had surged 3.2% or ?2250 per kg, extending Tuesday’s ?4,200 gain.
In global markets, gold prices were flat today, supported by weaker US dollar and hopes of more stimulus measures. Spot gold was steady at $2,039.75 per ounce, after hitting an all-time high of $2,055 in the previous session. US gold futures rose 0.3% to $2,055.90. Among other precious metals, silver fell 0.4% to $26.91 per ounce, while platinum rose 0.4% to $970.67.
The US dollar remained under pressure with the dollar index falling 0.2% to near two-year low against its rivals. A depreciation of the US dollar makes gold less expensive for holders of other currencies.
Uncertainty about global economic recovery and unprecedented stimulus measures have driven inflows into safe-haven assets such as gold this year. The yellow metal is up about 34% so far this year in global markets.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund or gold ETF, said its holdings rose 0.8% to 1,267.96 tonnes on Wednesday.
“Gold has been on an up move for last few days, supported by persistent weakness in US dollar, strong investor interest and safe haven buying amid rising virus cases globally and increased US-China tensions,” Kotak Securities said in a note.
The US dollar remains under pressure amid lower bond yields, diverging economic and virus situation in US and Europe and political wrangling over additional stimulus, the brokerage added.
Meanwhile, pressure grows on Republicans and Democrats to resolve differences over a new US virus relief package after jobs data released on Wednesday painted a grim picture.
Some analysts have turned cautious on gold after the sharp rally. “Gold has been rising for last few days and while there are positive factors, it is largely momentum buying that we are seeing at present hence one need to be cautious in buying at current elevated levels,” Kotak Securities added.
News Source:- livemint