Gold prices in India fell today after rising closer to record highs in the previous session. On MCX, August futures rates slipped 0.2% to ₹48,712 per 10 gram while silver futures edged 0.3% lower to ₹50,067 per kg. In the previous session, gold had surged 1.2% while silver 0.9%, tracking firm global rates. Last week, gold prices had surged to a record high of ₹48,982 per 10 gram.
In global markets, gold prices were steady at over eight-year high boosted by safe-haven demand due to surging coronavirus cases across the world. Expectations of more stimulus measures to prop up the economies also helped support gold.
Spot gold was steady at $1,793.56 per ounce.
US Federal Reserve officials have expressed concern that the renewed spread of coronavirus may threaten the pace of the recovery, pledging more support for the economy. Considered as a hedge against inflation and currency debasement, non-yielding gold benefits from widespread stimulus measures.
Many investors think gold will hold or increase its value as weak economic growth, government borrowing and central bank stimulus devalues other assets.
Investment demand for gold remained strong. The holdings of SPDR Gold Trust, the world’s largest gold-backed ETF or exchange-traded fund, rose 0.66% to 1,199.36 tonnes on Tuesday.