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Today, Gold prices in India fell slightly but held above Rs 49,000 levels. On MCX, August gold futures fell 0.1 per cent to Rs 49,211 per 10 gram after rising 0.21 per cent in the previous session. But silver rates edged higher. Silver futures on MCX rose 0.42 per cent to Rs 52,870 per kg, after falling 0.75 per cent in the previous session. Gold rates in India had hit a record high of Rs 49,348 last week and since then has hovered around Rs 49,000 levels.
In global markets, gold prices edged higher today as worries over surging coronavirus cases and renewed US-China tensions propped up demand for the safe-haven metal. Gold held above the key psychological $1,800 level, rising 0.1 per cent to $1,808.61 per ounce.
Reflecting increased investor interest in gold, holdings of SPDR Gold Trust, the world’s biggest gold-backed ETF, rose 0.2 per cent to 1,206.89 tonnes on Tuesday its highest in over seven years.
‘Gold may also benefit from renewed buying by ETF investors. Gold may witness choppy trade as market players assess the virus and geopolitical risks however the general bias may be on the upside amid increasing challenges to the global economy,’ Kotak Securities said in a note.
Tensions between the US and China flared up again after US President Donald Trump signed an executive order ending preferential treatment for Hong Kong and also shut the door on ‘Phase 2’ trade negotiations with China. US central bank officials on Tuesday warned that the economy faces a long recovery from the pandemic, and economic pain could still worsen as cases mount.
Gold is considered a safe-haven asset during times of economical and political uncertainties. The resultant safe-haven demand helped gold maintain its positive trajectory despite a rally in global stocks.
