Gold and silver prices continue to rise in India after posting strong gains in the previous session. On MCX, August gold futures rose 0.6% per cent or Rs 29 at Rs 52,410 per 10 gram. Silver futures spiked 2. 25 per cent or Rs 1,472 to Rs 67,000 per kg. In the previous session gold had surged 2.2% crossed the Rs 52,000 levels for the first time. On the other hand, silver had jumped 7.5%.
In global markets, gold jumped more than 1.5 per cent to hit a record and marched towards the $2000 level on Tuesday, boosted by a weaker dollar and expectations of a long, dovish stance from the US federal reserve as economic pain from the coronavirus pandemic grows. Gold futures rose $2.3% to $2,000 an ounce. Silver rates surged 5% to reach $ 25.81 %, up almost 33% in seven sessions.
Gold prices in the national capital continued to hit new highs rising by Rs 905 to Rs 52,960 per 10 gram on Monday in line with the rally in the international market, according to HDFC Securities. Silver was also in huge demand by Rs 3,347 to Rs 65,670 per kg.
Gold prices have hit new highs due to U.S. china tensions and a weaker dollar, while expectations of more stimulus to revive pandemic—hit economies lifted the metal’s appeal as an inflation hedge, said Jigar Trivedi, research analyst- commodities fundamental, Anand rathi shares & stock brokers.
Meanwhile, US Lawmakers continued their effort for the country’s next fiscal stimulus as senate republicans raced to complete details of a $ 1 trillion coronavirus aid proposal. Also supporting gold is a weaker dollar which has been fallen to a two-year low against a basket of currencies. Along with that uncertainty over COVID – 19 and low interest rates have boosted the appeal of gold which is considered a safe- haven during economic uncertainty.
“Exchange-traded fund (ETF) investors have continued to put money into the commodity amid increasing risks to the global economy. Gold holdings with the SPDR ETF rose by 1.75 tonnes to 1228.805 tonnes, highest since march 2013. While gold continues to rise, higher prices could further dampen consumer demand from countries like India and china.
In India , the government has extended the deadline for mandatory hallmarking of gold jewelry and artifacts by over four months till June 1 2021 in the ongoing COVID – 19 pandemic. Platinum rose 0.5 per cent to $950.13 and palladium gained 0.9 per cent to $2,331.76.