Gold and silver prices rose today in Indian markets as precious metals amplified recent gains in world markets. On MCX, gold futures rose 0.16% to ₹52,252 per 10 grams, while silver increased 0.8% to ₹65,880 per kg. Gold prices had recovered sharply last week, gaining around ₹1500 for 10 grams for 5 days. On the other hand, silver had posted a weekly gain of approximately ₹4,000 per kg. By August, gold had hit a record of ₹56,200 per 10 grams.
“Gold can continue to trade bullish where the precious metal can test ₹52,410 and receiving close support ₹51,800 while silver can trade with higher volatility where you can test ₹65,800 and receiving support near 64680.
Globally, gold prices rose today, supported by a weaker dollar and hopes for greater US stimulus amid optimism about the outlook under the presidency of Joe Biden. Gold rose 0.2% to $ 1,955.76 an ounce. Gold’s precious metal cousin, silver, was up 0.5% at $ 25.72 an ounce, while platinum was up 0.8% at $ 896.
The dollar index hovered around a more than two-month low of around 92,177. A weaker US dollar means that gold becomes more affordable for investors holding other currencies and could potentially increase demand for the precious metal. Gold is mainly traded in US dollars and India is a large importer of gold.
Some of the money left on the sidelines was moved to gold ETFs when it became clear that Joe Biden will win the US presidency. Holdings in SPDR Gold Trust, the world’s largest gold-backed gold ETF or exchange , rose 0.63% to 1,260.30 tonnes on Friday.
Gold also benefited from concerns about rising coronavirus cases around the world. Global COVID-19 infections have exceeded 5 million rupees.
While Biden declared victory and prepared to pull the pandemic-stricken US economy out of crisis, the unresolved state of Senate control may dampen prospects for a major stimulus before January, analysts say. Gold tends to benefit from widespread stimulus as it is seen as a hedge against inflation. Biden promised swift action against the pandemic and an orderly transfer of power during his victory speech over the weekend.
The last tranche of this fiscal’s gold sovereign bonds opens for subscription today before Dhanteras and Diwali to be celebrated this week. The issue price of the 2020-21-Series VIII sovereign gold bond scheme has been set at ₹5.177 per gram of gold. And a discount of ₹Investors who request online will have 50 per gram and the payment against the application will be made digitally. (With contributions from the agency)
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