Gold prices in India edged higher today, tracking moderate gains in global markets. On MCX, October gold futures rose 0.08% to ₹53,490 per 10 gram. Silver futures on MCX today rose ₹700 or 1.1% to ₹65,690 per kg. In the previous session, gold had surged about ₹650 per 10 gram or 1.2% while silver had jumped ₹2300 per kg or 3.6%. In India, gold prices have surged 35% this year, hitting new highs. In the previous session, gold had hit a high of ₹53,700 per 10 gram.
In global markets, gold rose to an all-time high today. pushed higher by a softer dollar and concerns over global economy as coronavirus cases continued to rise. Spot gold was up 0.1% at $1,976.47 per ounce, after hitting a record high of $1,984 earlier in session. Among other precious metals, silver eased 0.1% to $24.35 per ounce while palladium dropped 1.1% to $2,068.98.
US lawmakers have struggled to hammer out a new stimulus plan amid a global surge of new coronavirus cases, making investors nervous and putting pressure on the US dollar. The US dollar index remained near more than two-year low against its rivals, making gold less expensive for holders of other currencies.
“Movement across commodities in general continues to be swayed by US Dollar movement. The currency has come under pressure amid worries over that US economy may underperform its developed peers as coronavirus cases continue to surge in the nation,” Kotak Securities said in a note.
“Also putting pressure is uncertainty over fiscal stimulus from the nation as lawmakers continue to wrangle over the stimulus deal. Furthermore, the currency also was pressurized following US President Donald Trump’s suggestion of delaying the nation’s November presidential election until after the coronavirus pandemic eases,” it added.
Gold and silver prices may also be supported by upbeat safe haven demand, the brokerage said.
In global markets, gold prices surged 11% in July, the biggest monthly gain since 2012.
White House Chief of Staff Mark Meadows said he is not optimistic on reaching agreement soon on a stimulus package.
Further increasing the safe-haven appeal of gold, White House coronavirus experts said on Sunday that the US is in a new phase of the novel coronavirus outbreak with infections “extraordinarily widespread” in rural areas as well as cities.
Meanwhile, in India, the latest tranche of sovereign gold bonds opens today for subscription and the issue price has been fixed at ₹5,334 per gram. The issue remains open till Friday.
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