Gold prices in India today edged lower in early trade in futures market amid muted global rates. On MCX, August gold futures slipped 0.03% to ₹48,210 per 10 gram. This is the fourth day of decline in five days for gold but the correction has been shallow as the rising coronavirus cases continue to support the precious metal at lower levels. Silver futures on MCX today fell 0.2% to 49,691.
In the previous session, gold had risen 0.34% while silver had surged 1.2%. Last week, gold had hit a record high of ₹48,982 in Indian futures markets.
Spot gold, in global markets, edged higher to $1,784.99 per ounce, closing in on the near eight-year high of $1,788.96, which was hit last week. Among other precious metals, platinum gained 1.1% to $821.76 while silver rose 0.5% to $18.30.
Latest data showed that US services industry activity rebounded sharply in June, almost coming closer to its its pre-COVID-19 pandemic levels, but the emerging recovery is threatened by a resurgence in coronavirus cases. Gold is used as a safe investment during times of political and financial uncertainty.
Rising virus cases has fueled worries about pace of reopening of economies and added to expectations that stimulus measures may continue, Kotak Securities said in a recent note. This has helped support gold prices.