In India, Gold prices fall today, snapping a three-day gain as the country goes into a 21-day lockdown. On MCX, gold futures were down 0.8 per cent to Rs 41,039. Silver rates, however, edged 0.31 per cent higher to Rs 40,648 a kg. Gold prices in India have unperformed global markets as the lockdown hits trading volumes and demand.
On the other hand, in global markets, gold advanced for a third straight session today, hitting its highest in about two weeks. Spot gold today rose as much as 1.6 per cent to $ 1,635.79 earlier in the day its highest since March 12. Among other precious metals, silver rose 1.6 per cent to $14.49 per ounce while platinum gained 3 per cent to $729.49.
US Federal Reserve’s recent unprecedented stimulus measures as well as optimism that US lawmakers are closer to a deal on $ 2 trillion stimulus package to cushion the economic damage from the coronavirus outbreak, lifting equities and gold.
After days of consolidation, gold has come out of the $ 1450-1550/ounce range, Kotak Securities said in a note. Gold has rallied on US Federal Reserve’s announcement of unlimited quantitative easing and programmes to support credit markets. Other central banks are also taking measures to support their economies.
Read EquityPandit’s Nifty Outlook for the Week