Gold and silver prices rose today in India, following firm global rates. On MCX, December gold futures rose 0.8% to ₹50,584 while silver futures rose 1.8% to ₹61605 per kg. In the previous session, the price of gold had risen ₹142 in the middle of a hectic session, while silver had gained 0.17%. Gold and silver prices in India have drastically corrected from record levels of ₹56,200 and ₹80,000 respectively, hit in August of this year.
In global markets, gold prices rose amid optimism about a new coronavirus aid package in the United States after President Donald Trump said talks with Congress have restarted. A weaker US dollar also supported gold. Spot gold was up 0.3% at $ 1,898.31 an ounce. News reports said that Treasury Secretary Steven Mnuchin told Nancy Pelosi that President Donald Trump wants a deal on a comprehensive aid package.
The dollar index fell 0.2% and remained on track for a second consecutive weekly decline. Gold is seen as a hedge against inflation and currency devaluation and tends to benefit from widespread stimulus.
Among other precious metals, silver was up 0.4% at $ 23.93 an ounce, platinum was up 0.6% at $ 867.06 and palladium was up 0.3% at $ 2,379.29.
But some investors remained skeptical about a deal on a stimulus package in Washington after Trump pulled his negotiators out of the comprehensive deal talks on Tuesday.
“Gold may witness choppy trade reflecting turmoil in the US dollar and equity markets as more clarity is expected on the US stimulus front. However, we can see buying interest emerging at levels. lower as concerns about the health of the US economy may keep the US dollar down, “Kotak said. Values, he said.
Global central banks also slowed gold purchases. The world’s central banks sold more gold in August than they bought, the WGC said, ending a year-and-a-half monthly gold accumulation streak and helping to stem a rapid rise in gold prices. (With contributions from the agency)
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