Gold prices in India today inched closer to record highs, tracking higher firm global rates. On MCX, August gold futures rose 0.14% to ₹48,830 per 10 gram while silver futures were up 0.12% to ₹50,423 per kg. Domestic gold prices, which include 12.5% import duty and 3% GST, hit a record high of ₹48,825 per 10 gram in the previous session after they surged over 1%, in tandem with a rally in global markets. Silver had surged about 3% in the the previous session.
In global markets, gold prices today edged closer to near an eight-year high as resurgence in coronavirus cases pushed demand for the metal, which is considered as a safe-haven in times of economic uncertainty. Spot gold edged up 0.1% at $1,782.21 per ounce, after hitting its $1,785.46 in the previous session – highest since October 2012.
Among other precious metals, platinum rose 0.7% to $822.50 and silver gained 0.6% at $18.24.
Widespread stimulus measures from central banks have pushed down interest rates and it benefits non-yielding gold, which is widely viewed as a hedge against inflation and currency debasement.
Federal Reserve Chairman Jerome Powell on Tuesday stressed to Congress Tuesday that getting the coronavirus under control was vital as the U.S. economy rebounds and also warned against pulling back on any form of stimulus too soon.
“US-China tensions have added to challenges to global economy. Consumer demand remains weak amid higher price and slack economic growth. Gold may witness choppy trade as market players continue to assess virus situation however general bias may be on the upside owing to rising virus risks,” Kotak Securities said in a note.
The US recorded 47,000 fresh coronavirus cases on Tuesday, the biggest single-day spike as the government’s top infectious disease expert warned that number could soon double. Anthony Fauci, head of the National Institute of Allergy and Infectious Diseases, warned that daily increase in new cases in the US could reach 100,000 unless steps were taken to control the resurgence in new cases.