Gold prices in India continued the upward trend in tandem with a rally in global markets. On MCX, August gold futures were up 0.2% to ₹50,800 per 10 gram, extending gains to the sixth day. Silver prices however edged lower on profit-taking with futures on MCX declining 0.14% to ₹61,110 per kg. Gold prices in India had hit a new high of ₹50,936 per 10 gram in the previous session after they rose as much as 1.5%. So far this year, gold has rallied about 30% in India.
In global markets, gold rates were steady today supported by an escalation in US-China tensions and expectations of more stimulus as coronavirus cases continue to surge in many parts of the world. Spot gold was flat at $1,885.62 per ounce, after coming close to $1,900 level in the previous session – the highest since September 2011. Among other precious metals, silver fell 0.3% to $22.66 per ounce, while platinum rose 0.9% to $913.86.
Gold prices have risen more then 4% so far this week in global markets, their biggest weekly percentage gain in over three months.
Gold is viewed as a safe-haven during times of political and financial uncertainty. The precious metal has also been supported by a weak dollar.
“Gold and silver” may witness choppy trade as market players assess virus risks and geopolitical tensions against expectations of additional stimulus measures however the general bias may be on the upside due to weaker US dollar,” Kotak Securities said in a note.