Gold prices in India remained regular right this moment, with the dear steel struggling for beneficial properties for third day in a row. On MCX, August gold prices have been flat at ₹47,350 per 10 gram. Silver rates nonetheless edged decrease. On MCX, silver futures fell 0.15% to ₹47,790 per kg, following a ₹600 slide in the earlier session. In world markets, gold prices remained regular with spot rates flat at at $1,723.19 per ounce. Fears of a second wave of coronavirus infections and renewed US-China tensions boosted the safe-haven attraction of gold.
But it was offset by a stronger US greenback and optimism of a swift financial restoration that capped upside.
Among different valuable metals, silver fell 0.7% to $17.38, whereas platinum gained 0.1% to $805.34.
“Fears of a second wave of coronavirus pandemic and escalating global geopolitical tensions continue to support gold’s haven demand. Meanwhile, hopes of a quick economic recovery and a steady dollar are likely to limit major upsides,” mentioned Hareesh V, Head Commodity Research at Geojit Financial Services
Buying momentum is more likely to proceed so long as prices (London spot) keep above $1710, he mentioned, including that sturdy resistances are seen at $1740 adopted by $1780 ranges. The instant draw back reversal level is $1645.
Investors proceed to weigh a resurgence in some virus hotspots internationally which will derail an financial restoration in opposition to file stimulus measures to assist stave off the worst of the pandemic’s affect. A surge in new infections in a number of US states and the imposition of journey curbs in Beijing to cease a new outbreak there have served as a reminder of the dangers of reopening financial exercise.
But US-China tensions proceed to simmer. US President Donald Trump on Thursday renewed his menace to chop ties with China, a day after his high diplomats held talks with Beijing.
Gold is commonly used as a secure retailer of worth throughout instances of political and monetary uncertainty.
Denting gold’s attraction, the greenback index rose 0.1% and hovered close to a two-week excessive hit in the earlier session. A agency US greenback makes gold costlier for holders of different currencies.
Leading US authorities professional Anthony Fauci has mentioned he’s optimistic the world would quickly have a coronavirus vaccine that will finish the pandemic, calling early trial outcomes “encouraging.” (With Agency Inputs)