Gold prices in India moved greater for the third day in a row, edging closer to record highs. On MCX, June gold futures rose 0.3% to about ₹46,800 per 10 gram. In the earlier session, gold had surged about 1.4%, monitoring sturdy international cues. Last month, gold prices had hit record excessive of ₹47,327 per 10 gram. Silver futures on MCX surged ₹615 to ₹44,750 per kg, extending their ₹1,090 acquire of the earlier session.
In international markets, gold prices edge greater amid expectations of extra stimulus from governments and central banks. US-China tensions additionally boosted the safe-haven enchantment of gold. US President Donald Trump is open to negotiations on one other doable stimulus invoice amid the pandemic, a White House spokeswoman stated. Among different treasured metals, platinum eased 0.1% to $767.29, whereas silver rose 0.7% to $15.97.
Spot gold gained 0.1% to a three-week excessive of $1,730.56 per ounce, extending the good points to about 2% for this week.
Gold tends to profit from widespread stimulus measures as it’s typically seen as a hedge towards inflation and foreign money debasement. “US Federal Reserve’s downbeat economic projection and hopes of further economic stimulus support gold’s safe haven demand. Concerns over the next wave of virus outbreak will also boost the safe-haven appeal of gold,” stated Hareesh V, head of commodity analysis at Geojit Financial Services.
Analysts says buyers are rethinking their bets that the reopening of economies all over the world will permit for a comparatively fast resumption of development. Another doable flare-up in tensions between the US and China can be hitting markets.
On Wednesday, Federal Reserve Chair Jerome Powell warned that coronavirus disaster might outcome in a protracted downturn, whereas the highest infections illnesses skilled in the US stated reopening the economic system too rapidly might backfire and lead to extra deaths.
The holdings of SPDR Gold Trust holdings, the world’s largest gold-backed exchange-traded fund, rose 1.15% to 1,104.72 tonnes on Thursday.
The second tranche of sovereign gold bond scheme 2020-21, which opened for subscription on Monday, will shut today. The situation worth of the newest gold bond scheme has been mounted at 4,590 per gram (999 purity) and people making use of on-line and making fee via digital mode will get a reduction of ₹50 per gram. Sovereign gold bonds are issued by the Reserve Bank of India (RBI) on behalf of the federal government.
(With Agency Inputs)