Gold prices in India edged lower today after hitting a new high in the previous session. On MCX, gold futures were down 0.05% to ₹49,134 per 10 gram while silver futures were up 0.09% at ₹51,427 per kg. On MCX, gold prices had risen 0.7% in the previous session while silver had surged 2.2%. Gold prices had surged to a record high of ₹49,348 per 10 gram in the previous session, tracking firm global rates.
In global markets, gold price eased today after rising to a nine-year high in the previous session. Spot gold fell rates declined 0.2% to $1,806, after rising to its $1,817.71 in the previous session – a nine-year high.
Rising coronavirus cases has raised doubts about the durability of global economic recovery. And along with a strong investment demand, the losses were capped today. The holdings of SPDR Gold Trust, the world’s largest gold ETF rose 0.27% to 1,182.11 tonnes on Wednesday.
Gold is considered a safe haven during times of political and financial uncertainty.
Among other precious metals, platinum climbed 0.3% to $846.50, while silver lost 0.7% to $18.64.
Gold backed ETFs have attracted record inflows this year amid worries about global economy and vast stimulus unleashed by central banks.
In India, sovereign gold bonds and ETFs have attracted seen strong inflows from investors.
The fourth tranche of sovereign gold bonds of this year, which is currently open for subscription, will close on Friday. In this issue, price of one gram of gold has been fixed at ₹4,852 while investors applying online and making payment through digital mode will get a discount of ₹50 per gram.